On December 19, January Nymex natural gas prices surged by +11.17%, closing up +0.443, driven by heavy short-covering and forecasts of cold weather impacting the East Coast and Midwest. The rally came after a significant price decline earlier in the month.
As of December 19, US dry natural gas production stood at 113.9 bcf/day, a 9.6% increase year-over-year, while demand was reported at 87.9 bcf/day, down 12.6% year-over-year. Despite increasing production forecasts, EIA data revealed a smaller than expected inventory draw of -167 bcf for the week ending December 12, compared to a consensus of -176 bcf.
Baker Hughes reported that the number of active US natural gas drilling rigs remained stable at 127 as of December 26, just below a recent peak of 130, marking a significant recovery from a low of 94 rigs in September 2024.
