August Nymex natural gas closed up by +0.073 (+2.14%) on Wednesday, following expectations for a smaller-than-average increase in weekly nat-gas inventories. Analysts predict a rise of +49 billion cubic feet (bcf) for the week ending June 27, below the five-year average of +61 bcf for this period.
Dry gas production in the Lower 48 states was reported at 107.1 bcf/day (+3.7% year-over-year), while gas demand was 75.5 bcf/day (+0.2% year-over-year). LNG net flows to export terminals reached 15.7 bcf/day (+6.8% week-over-week), indicating a robust demand. Additionally, U.S. electricity output rose +3.2% year-over-year to 99,357 GWh for the week ending June 28.
As of June 30, European gas storage was 59% full, compared to a five-year average of 68%. Baker Hughes reported a decrease in active U.S. nat-gas drilling rigs to 109 as of June 27, down by 2 from the previous week.
