April Nymex natural gas prices fell by 1.43% to close at a 5-month low on February 24, driven by a below-average inventory draw and forecasts of warmer weather in the U.S. Weekly EIA data showed inventories decreased by 52 billion cubic feet (bcf) for the week ending February 20, significantly lower than the five-year average draw of 168 bcf.
U.S. dry gas production reached 112.7 bcf per day, up 6.5% year-over-year, while demand increased by 15.1% to 91.6 bcf per day. Additionally, net LNG flows to U.S. export terminals were reported at 19.7 bcf per day, reflecting a 0.7% week-over-week rise.
Natural gas inventories were 9.7% higher than last year and slightly below their 5-year average as of February 20. Despite high production levels, the Edison Electric Institute reported a 13.46% year-over-year decline in electricity output for the week ending February 21, which could further impact gas prices.
