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On October 9, 2023, Nymex natural gas prices closed at $3.080, marking an increase of 1.38% (+$0.042) as concerns over supply and warmer late-summer temperature forecasts heightened demand. Repairs at a Kinder Morgan gas compressor station in Liberty County, Texas, have extended for an additional week, reducing gas flows between Texas and Louisiana.
As of October 9, US lower-48 dry gas production was reported at 108.1 billion cubic feet per day (bcf/day), a 5.9% year-over-year increase. Meanwhile, demand for gas reached 69.8 bcf/day, reflecting a 2.5% rise year-over-year. Last week’s EIA report indicated a rise in nat-gas inventories by 55 bcf, aligning with market expectations and remaining 5.6% above the five-year seasonal average.
Despite a decline in the number of active US nat-gas drilling rigs to 118, down from 124, the gas production remains near a record high, supporting ongoing supply concerns in the market.
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