NATGAS Analysis 15-July-2024

US natural gas futures dropped below $2.22 per MMBtu, hitting a two-month low. This was due to higher production, less gas flowing to LNG export plants, and too much gas in storage.

Production in the Lower 48 states increased to 102.4 bcfd in July, up from 99.5 bcfd in May. Additionally, gas flow to major US LNG export facilities fell to 12.2 bcfd from 12.8 bcfd in June, mainly because of the Freeport shutdown caused by Hurricane Beryl.

The EIA report indicated that utilities added 65 billion cubic feet of gas to storage during the week ending July 5, making stockpiles 18.7% above seasonal levels. Looking forward, temperatures are expected to be above average across the Lower 48 states until at least July 25.

NATGAS Analysis 15-July-2024