Gas Prices Slip on Surplus Fears The recent dip in natural gas prices may seem like a minor market fluctuation, but it is actually a symptom of a deeper issue: the United States is producing more gas than it can efficiently use.
According to the Energy Information Administration (EIA), US domestic stockpiles are expected to increase by 61 billion cubic feet for the week ended July 3, well above the five year average.
This surplus has sent nat gas prices tumbling, erasing gains made just a day earlier. The steady rise in US production is primarily responsible for this abundance of natural gas.