On Wednesday, June Nymex natural gas closed down 3.53% at -0.110, following a drop from an 8-week high due to abundant U.S. supplies and expectations of increased storage levels. Analysts predict Thursday’s EIA inventory report will show a rise of +98 bcf for the week ending May 15, surpassing the five-year average of +92 bcf.
As of Wednesday, U.S. dry gas production was reported at 109.3 bcf/day, a year-over-year increase of 1.4%, while demand reached 73.0 bcf/day, up 4.1% from the previous year. The U.S. has 128 active natural gas drilling rigs, slightly below a recent peak of 134 rigs. Meanwhile, the outlook for exports may be bolstered by the ongoing closure of the Strait of Hormuz and damage to Qatar’s Ras Laffan LNG export facility, which accounts for 20% of global LNG supply and may further tighten the market.
Last week, U.S. electricity output rose by 2.16% year-over-year to 77,491 GWh, contributing to a medium-term positive outlook for natural gas prices amid global supply constraints.
5 Stocks Our Experts Predict Could Double In the Next Year
By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.
