September Nymex natural gas (NGU26) prices fell by 2.88% on Thursday, closing down $0.081 amid cooler weather forecasts in the U.S., which are expected to reduce demand for natural gas from electricity providers. The Commodity Weather Group reported a shift from previously anticipated hot weather in the South.
The U.S. Energy Information Administration (EIA) announced that natural gas inventories rose by 16 billion cubic feet (bcf) for the week ended August 14, surpassing market expectations of 14 bcf. Current inventories are 6.7% above the five-year seasonal average. Additionally, U.S. dry gas production was recorded at 112.1 bcf/day, a 2.8% increase year-over-year, while LNG net flows to export terminals dropped to 17.5 bcf/day, a 2.5% decline from the previous week.
Baker Hughes reported an increase in active U.S. natural gas drilling rigs, rising by 4 to a total of 128, still lower than the three-year high of 134 rigs reached in February 2023. The EIA anticipates that natural gas storage levels will peak at 3,985 bcf by the end of October, marking the highest levels in a decade.
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