Natural Gas Market Update: On Wednesday, September Nymex natural gas closed at $2.88, up by 5.52%. The price increase comes ahead of the Thursday EIA storage report, which is expected to show a build of 27 billion cubic feet (bcf), below the 5-year average of 38 bcf.
As of Wednesday, US dry gas production was at 107.7 bcf/day, marking a 4.5% year-over-year increase, while gas demand was reported at 72.4 bcf/day, down 15.2% year-over-year. The number of active US natural gas rigs remained steady at 122, just below the two-year high of 124.
Contributing factors for the price dynamics include forecasts of lower temperatures in early September, which may reduce demand for natural gas, and increased production levels, as the EIA raised its US production forecasts for 2025 and 2026.
