On Thursday, May Nymex natural gas (NGK26) closed down by 1.98% at $2.67, marking a 7.5-month low due to a larger-than-expected build in gas storage levels. The EIA reported an increase of 50 billion cubic feet (bcf) in nat-gas inventories for the week ending April 3, surpassing expectations of 48 bcf and the 5-year average of 13 bcf.
US dry gas production on Thursday reached 110.9 bcf/day, a 4.3% increase year-over-year, while demand fell to 70.4 bcf/day, down 9.2% year-over-year. Projections suggest ongoing increases in US nat-gas production, with the EIA raising its 2026 forecast to 109.59 bcf/day. Additionally, Baker Hughes reported an increase in active gas drilling rigs to 130, still below February’s high of 134.
Forecasts for above-normal spring temperatures are expected to further reduce heating demand for nat-gas across the eastern US through April 23. Meanwhile, the ongoing damage to Qatar’s Ras Laffan LNG export plant, which accounts for approximately 20% of global supply, could create short-term upward pressure on prices.
