LNG rates in the United States are down after inventory levels climb even higher- 6.6% above the seasonal average.
Written by:
Timothy St. John
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Monday, July 13, 2026
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2 min read
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Last updated: Monday, July 13, 2026
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Quick overview
- U.S. natural gas prices have dropped to $2.89 per MMBtu due to increased supply and decreased demand.
- Domestic LNG market trends indicate significant selling pressure with inventories rising 6.6% above seasonal averages.
- Export demand has decreased following the opening of the Strait of Hormuz, contributing to lower flows in July.
- While rising temperatures may increase short-term demand for natural gas, it is unlikely to significantly impact prices amid high inventory levels.
Supply is up and demand is down for U.S. natural gas, pulling the price down to $2.89 per MMBtu, and market data points toward a bearish market.
Short term trends for the domestic LNG market are showing immense selling pressure and little incentive to buy at the moment. The price should continue to fall as demand remains stifled and inventories are bloated. Inventory levels are expected to climb even higher due to mild temperatures and low output from producers.
Export facilities are also seeing lower flows for the month of July. Demand for exports slipped after the Strait of Hormuz opened up last month, but that could change as fighting continues in that region.
Gas Stocks Rise above 6%
The biggest influencing factor on falling LNG rates in the United states is likely the climbing reserves that the major producers have on hand. These reserves are now 6.6% higher than the seasonal average. That is according to the last reports from the Energy Information Agency (EIA), and what is even more concerning for investors is that those levels are not expected to fall anytime soon.
The inventory level is likewise about 6.6% above the five-year average, and as the EIA continues to report rising reserves, the price of natural gas continues to fall. We anticipate only mild gains for the summer months since the inventory issue is likely to remain a staple of the market for weeks.
Output for the lower 48 U.S. states is up, however, climbing to 110.2 billion cubic feet daily. That is the tally for July at the moment, and it is only a minor increase from the previous month. For June, 110 cubic feet per day was the average.
About the only factor pushing back against the falling price levels is the rising temperatures expected for the coming weeks. Higher than normal temperatures have been forecast, and that means that more natural gas will be needed to power air conducting units for many industries and residents. However, the demand due to climbing temperatures is not likely to be enough to make much of an impact on the low LNG price for now. The influence of high inventory and low exports are likely to outpace the minimal demand increase.
Timothy St. John
Financial Writer – European & US Desks
Timothy St John is a seasoned financial analyst and writer, catering to the dynamic landscapes of the US and European markets. Boasting over a decade of extensive freelance writing experience, he has made significant contributions to reputable platforms such as Yahoo!Finance, business.com: Expert Business Advice, Tips, and Resources – Business.com, and numerous others. Timothy’s expertise lies in in-depth research and comprehensive coverage of stock and cryptocurrency movements, coupled with a keen understanding of the economic factors influencing currency dynamics. Timothy majored in English at East Tennessee State University, and you can find him on LinkedIn.
