On Tuesday, February Nymex natural gas (NGG26) closed down by $0.014 (-0.35%), influenced by forecasts predicting warmer weather across much of the central and eastern U.S. from January 4-8, which is expected to reduce heating demand. Current U.S. natural gas production is high, with the Energy Information Administration (EIA) projecting 2025 production at 107.74 billion cubic feet per day (bcf/day), an increase from November’s estimate of 107.70 bcf/day.
As of January 2, active U.S. natural gas drilling rigs fell by two to 125, following a recent two-and-a-half-year high of 130 rigs recorded on November 28. Recent weekly data indicated U.S. lower-48 dry gas production was 112.9 bcf/day (up 6.0% year-over-year), with demand at 113.1 bcf/day (up 41.4% year-over-year). Natural gas inventories for the week ending December 19 decreased by 166 bcf, slightly above market expectations.
As of December 28, gas storage in Europe was 64% full, compared to the five-year seasonal average of 75%. The Edison Electric Institute reported U.S. electricity output rose by 2.3% year-over-year to 85,330 GWh for the week ended December 6, bolstering gas prices amid tight supplies.
