August Nymex natural gas prices closed at $3.20, down by 3.77% on July 5, marking a six-week low, driven by cooler weather forecasts and expectations of higher inventories. Forecasts indicate cooler temperatures in the Midwest and eastern US, reducing demand for natural gas from electricity providers.
The weekly EIA report is expected to show an increase of 61 billion cubic feet (bcf) in inventories for the week ending July 4, exceeding the five-year average of 53 bcf. Meanwhile, lower-48 state dry gas production was reported at 105.3 bcf/day, up 3.6% year-on-year, while gas demand dropped to 77.5 bcf/day, down 8.6% year-on-year. LNG net flows to US export terminals were 15.0 bcf/day, a week-on-week increase of 0.9%.
Baker Hughes reported a decline of one active US natural gas drilling rig, bringing the total to 108 as of July 4, slightly below the 15-month high of 114 reached on June 6.
