North American natural gas futures dropped below $8.00/MMBtu this week as U.S. natural gas production neared an all-time high of around 100 Bcf/d.

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A U.S. Environmental Protection Agency (EPA) decision maintaining emissions limits at turbines at Cheniere Energy Inc.’s LNG facilities further empowered bears. Cheniere’s Sabine Pass and Corpus Christi liquefied natural gas facilities currently account for more than half of U.S. exports, and losses in production could have ramifications globally.

Natural gas demand is also slower during the shoulder season between summer and winter, including in Mexico.

“Mexico’s natural gas market is starting its transit to the fall season, which is usually marked by weakening supply-demand fundamentals,” Wood Mackenzie analyst Ricardo...