On Friday, July Nymex natural gas (NGN26) prices dropped by $0.107, or 3.21%, as abundant U.S. stockpiles and reduced flows to export terminals increased domestic supplies. As of May 29, natural gas inventories were 5.7% above the five-year seasonal average, highlighting ample availability.
U.S. lower-48 dry gas production reached 110.4 billion cubic feet per day (bcf/day), showing a 1.7% year-over-year increase, while lower-48 state gas demand fell to 70.6 bcf/day, a decline of 2.0% year-over-year. Net flows to U.S. LNG export terminals were reported at 17.2 bcf/day, down 5.8% week-over-week.
Weather forecasts indicate above-average temperatures across the Midwest and Northeast through June 14, possibly boosting natural gas demand due to increased air-conditioning usage. Additionally, geopolitical factors, such as disruptions in the Strait of Hormuz and damage to Qatar’s LNG export capacity, are expected to impact global natural gas supplies.
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