Natural gas prices for August on the Nymex closed down by $0.072 (-2.11%) on Tuesday. The decline was attributed to cooler weather forecasts in the central and eastern U.S., which will reduce demand for natural gas as energy providers scale back air-conditioning use.
As of June 27, U.S. natural gas supplies rose by 55 billion cubic feet (bcf) and stood 6.2% above the 5-year average, although they were down 5.8% year-on-year. Lower-48 state dry gas production reached 104.8 bcf/day, up 3.9% year-on-year, while gas demand declined to 77.9 bcf/day, a decrease of 6.8% year-on-year. The estimated net flows to U.S. LNG export terminals were reported at 15.0 bcf/day, a 2.5% drop week-on-week.
In the week ending July 4, the number of active U.S. natural gas drilling rigs fell by 1 to 108, down from a 15-month high of 114 rigs on June 6. In the past nine months, the count has increased significantly from a 4-year low of 94 rigs reported in September 2024.
