On Friday, September Nymex natural gas (NGU25) closed down by 0.023 (-0.74%). The decline followed an earlier advance, driven by increased natural gas output and supplies well above normal, with inventories reported to be 6.7% above the five-year seasonal average as of July 25.
This drop came after a report revealed that the number of active US natural gas drilling rigs increased by 2 to a two-year high of 124 rigs, while lower-48 state dry gas production was recorded at 108.1 billion cubic feet per day (bcf/day), marking a 3.4% year-over-year increase. In contrast, lower-48 state gas demand was reported at 76.1 bcf/day, a decline of 13.0% year-over-year.
Additionally, the recent weekly EIA report indicated that natural gas inventories rose by 48 bcf, exceeding the consensus estimate of 41 bcf. As of July 30, European gas storage was reported to be 68% full, compared to a five-year seasonal average of 76%.
