US natural gas prices fell 4% amid production growth

Natural gas prices in the US fell about 4% to levels just below $3.7 on Monday due to rising production coupled with a decline of raw material supply flows to liquefied natural gas (LNG) export plants.

According to data compiled by financial firm LSEG, the average gas production in the lower 48 states fell to 103.7 billion cubic feet per day in May from April's 105.8 billion. At the same time, the average volume of fuel delivered to major US LNG export plants fell to 15.1 billion cubic feet per day in May from 16.0 billion recorded last month.

Analysts quoted by Reuters said that generally mild weather should keep heating and cooling demand low in the coming week. That will allow utilities to continue pumping more fuel into storages. US gas inventories are already filled about 3% above normal levels for the past five years (2020-2024).

However, a decrease in US oil prices of about 11% in 2025 may push drillers to cut oil production and lead to a reduction in associated gas output. Analysts say there still is a possibility for the gas price in the US to rise in the future.