U.S. natural gas futures hover near a two-month low as rising production and weak LNG export demand weigh on the market, with limited impact expected from the tropical storm.

智通财经2026/07/21 15:11

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U.S. natural gas futures were basically flat on Tuesday at $2.858 per million British thermal units, remaining in the low range since mid-May. Output continues to recover while LNG export flows have declined, creating dual downward pressure. Additionally, anticipated cooling and power outages from tropical storms have further weakened demand prospects.
Tropical Storm Beryl is expected to make landfall Wednesday near the Mississippi River Delta in Louisiana, close to Venture Global's Plaquemines LNG export facility. The storm is then forecasted to move west across the state and may potentially affect most Gulf Coast LNG plants. However, on that day, Plaquemines' feed gas flows actually increased from 3.6 billion cubic feet per day to 3.8 billion cubic feet per day, and no significant production cuts were observed at other plants.
Analysts noted that the majority of U.S. natural gas production comes from inland shale basins, with federal offshore Gulf of Mexico output accounting for only about 2% of total supply. Thus, storms have a limited direct impact on production but may temporarily dampen demand through cooler temperatures, rainfall, and localized power outages.
Since July, daily average production across the contiguous 48 U.S. states has been around 110.5 billion cubic feet per day, higher than June levels but below the record peak set in December last year. As for inventories, gas storage is expected to be about 6.5% above normal as of the week ending July 17, providing the market with a buffer. Mid-term weather forecasts remain on the warm side, meaning cooling demand will continue to provide some price support at the bottom.

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U.S. natural gas futures hover near a two-month low as rising production and weak LNG export demand weigh on the market, with limited impact expected from the tropical storm.

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