May Nymex natural gas prices closed up 1.02% on Friday, April 21, 2023, settling at +0.027. This increase comes amid forecasts of above-average temperatures in the Southeast U.S. and Midwest from April 22-26, which may boost demand for natural gas for air conditioning.
Earlier in the week, prices dipped to a 17-month low due to decreased heating demand from unusually warm spring weather, resulting in natural gas inventories 5.8% above the five-year seasonal average as of April 10. U.S. dry gas production was reported at 111.1 billion cubic feet per day (bcf/day), a 4.0% increase year-over-year, while gas demand fell to 68.3 bcf/day (-0.6% y/y) on the same day.
Additionally, global LNG supply conditions may tighten due to substantial damage at Qatar’s Ras Laffan industrial complex, which accounts for 20% of global LNG supply. The U.S. electricity output decreased 1.0% year-over-year during the week ending April 11, although annual figures showed a 1.76% increase, reflecting overall stable energy consumption trends.
