US natural gas prices dropped further to $2.90 per MMBtu, the lowest in seven weeks, amid a milder weather outlook, expectations of reduced gas flows to LNG export facilities, and comfortable supply conditions.
Forecasts shifted toward cooler temperatures in the coming weeks, likely curbing demand for gas-fired power generation as air-conditioning usage declines.
Additionally, Freeport LNG announced that scheduled maintenance at its pre-treatment and liquefaction facilities would begin on July 10 and continue through late August, temporarily lowering feedgas demand.
Moreover, the latest EIA weekly report showed that domestic gas inventories were 6.6% above the five-year average as of July 3, highlighting a well-supplied market.