On Tuesday, July Nymex natural gas closed up by +0.103 (+2.75%), reaching a 2-1/4 month high as demand is expected to rise due to hot weather forecasts in the eastern US from June 22-26. European natural gas prices also rallied to a 2-1/2 month high amid supply concerns stemming from geopolitical tensions, including attacks on Iran’s gas fields.
Lower-48 state dry gas production was reported at 105.8 bcf/day (+2.3% year-over-year), while gas demand was 75.1 bcf/day (-0.2% year-over-year). LNG net flows to US export terminals stood at 13.4 bcf/day (-1.7% week-over-week). The upcoming EIA report is expected to show a 96 bcf increase in nat-gas inventories.
As of June 6, nat-gas inventories were down -9.0% year-over-year and 5.4% above the 5-year average. Baker Hughes reported a decrease in active US nat-gas drilling rigs to 113, falling from a 15-month high of 114.
