**May Nymex natural gas (NGK26) prices fell by 3.97%, closing at a one-week low of -0.108 on April 20, 2023.** This decline is attributed to a significant increase in U.S. natural gas storage levels, with weekly EIA inventories rising by 103 billion cubic feet (bcf), surpassing expectations of 97 bcf and exceeding the five-year average of 64 bcf.
As of April 21, U.S. dry gas production reached 110.6 bcf/day, an increase of 3.7% year-over-year, while demand stood at 67.7 bcf/day, up 3.1% year-over-year. Additionally, U.S. LNG net flows to export terminals were reported at 19.8 bcf/day, marking a slight increase from the previous week. The outlook for warmer weather is expected to reduce heating demand for natural gas, further impacting prices negatively.
