Natural gas prices fell by 3.34% to 300.9 due to rising output, strong inventory builds, and reduced LNG exports. Despite hotter-than-usual temperatures in the U.S., production in the Lower 48 states averaged 105.5 billion cubic feet per day (bcfd) in June, slightly higher than in May.
The key weight on prices is the growing storage surplus, which has suppressed bullish momentum since mid-April. U.S. utilities injected 96 billion cubic feet into storage for the week ending June 20, exceeding expectations of 88 bcf.
This marked the 10th straight week of outsized storage builds, pushing inventories to 2.898 trillion cubic feet, 6% above the five-year average.
The EIA projects record production and demand in 2025, with dry gas output forecasting at 105.9 bcfd and domestic consumption rising to 91.3 bcfd. LNG exports are expected to average 14.6 bcfd in 2025 and 16.0 bcfd in 2026.
