April Nymex natural gas (NGJ26) prices closed at $3.06 on Wednesday, gaining $0.032 or 1.06%. This recovery followed a surge in European gas prices, which climbed 6% after Iran threatened to retaliate against energy infrastructure in Saudi Arabia, Qatar, and the UAE due to airstrikes on its facilities.
US dry natural gas production reached 111.6 billion cubic feet per day (bcf/day), a 4.7% year-over-year increase, while demand rose to 94.2 bcf/day, reflecting a 26.1% year-over-year increase. The upcoming EIA report is expected to show a storage build of 39 bcf for the week ending March 13, contrasting with the five-year average decline of 29 bcf. As of March 15, European gas storage was 29% full compared to the seasonal average of 42%.
Additionally, Baker Hughes reported an increase in active US natural gas drilling rigs, rising to 133, just shy of a 2.5-year high. This uptick comes as broader production forecasts have been adjusted higher, adding bearish pressure on prices.
