On Wednesday, June Nymex natural gas prices closed down by $0.058, or 2.08%, amid declining U.S. LNG exports, which fell to 17.7 billion cubic feet (bcf)—the lowest level in over three months. This reduction in flows to U.S. Gulf Coast export terminals is attributed to seasonal maintenance and has led to increased domestic inventory levels, which are currently 7.7% above the five-year average as of April 24.
U.S. dry gas production reached 110.9 bcf per day, a 5.5% year-over-year increase, while gas demand was recorded at 72.2 bcf per day, up 9.5% year-over-year. The number of active U.S. natural gas drilling rigs has also seen a slight rise, reaching 130 rigs as of May 1, indicating ongoing production growth despite recent price declines.
Projections suggest that the upcoming Thursday EIA report will show an increase of 72 bcf in nat-gas inventories for the week ending May 1, falling short of the five-year average of 77 bcf. This comes after inventories rose by 79 bcf in the previous week, above the five-year average of 63 bcf.
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