April Nymex natural gas (NGJ26) closed down $0.071 (-2.24%) on Friday, with warmer US weather forecasts expected to decrease heating demand. The Commodity Weather Group reported above-average temperatures across the western US through March 29.
Significant damage at Qatar’s Ras Laffan LNG export plant, caused by attacks from Iran, has impacted 17% of its capacity, which accounts for 20% of the global LNG supply. The repairs will take three to five years, potentially boosting US nat-gas exports amid reduced supplies to Europe and Asia from the closure of the Strait of Hormuz.
US lower-48 dry gas production reached 112.7 billion cubic feet per day (bcf/day) on Friday, up 4.8% year-on-year, while demand was 65.4 bcf/day, down 22.9% year-on-year. Nat-gas inventories rose by 35 bcf in the week ending March 13, exceeding the 5-year weekly average draw of -29 bcf, and are up 10.3% year-on-year, signaling robust supplies.
