On Thursday, April Nymex natural gas prices closed at $3.21, up by $0.024 or 0.75%, influenced by rising crude oil and European gas prices amid escalating tensions linked to the Iran war. Iran’s Supreme Leader, Ayatollah Mojtaba Khamenei, confirmed intentions to leverage control over the Strait of Hormuz, prompting concerns of continued military actions against Gulf Arab neighbors.
For the week ended March 6, the U.S. Energy Information Administration reported a nat-gas inventory decline of 38 billion cubic feet (bcf), which was less than the expected drop of 41 bcf. U.S. dry gas production reached 112.3 bcf/day, up 5.3% year-over-year, while gas demand saw an increase to 84.7 bcf/day, up 7.8% year-over-year. The closure of Qatar’s Ras Laffan plant, responsible for about 20% of global liquefied natural gas supply, could potentially enhance U.S. nat-gas exports.
In Europe, storage levels were reported at 29% full compared to a 5-year average of 43% for the same period. Additionally, Baker Hughes noted a decrease in the number of active U.S. nat-gas drilling rigs, dropping by two to 132 rigs, following a peak of 134 rigs, indicating a contracting drilling activity landscape.
