April Nymex natural gas closed down 3.15% on Friday, dropping by $0.102 amid forecasts for warmer-than-usual temperatures across the western two-thirds of the U.S. from March 18-22, which may reduce heating demand.
European natural gas prices surged to a three-year high last week after Iran targeted Qatar’s Ras Laffan plant, the world’s largest natural gas export facility, causing a potential boost in U.S. natural gas exports. U.S. dry gas production reached 113.1 billion cubic feet per day, a 5.2% year-over-year increase, while demand stood at 81.7 billion cubic feet per day, up 5.5% year-over-year.
Baker Hughes reported an increase in active U.S. natural gas drilling rigs, rising by one to 133 rigs, just below a 2.5-year high. Natural gas inventories saw a smaller draw than expected, down by 38 billion cubic feet against a consensus of 41 billion cubic feet, indicating near-normal supply levels.
