On Thursday, July Nymex natural gas prices closed down 3.70% at a six-month low. This drop followed a weekly EIA report indicating a 96 billion cubic feet (bcf) increase in inventories for the week ending June 20, exceeding expectations of 88 bcf and the 5-year average build of 79 bcf.
Lower-48 state dry gas production was reported at 105.6 bcf/day, which is a 2.7% year-over-year increase, while gas demand decreased to 77.1 bcf/day, down 1.2% year-over-year. Additionally, total US electricity output fell by 3.1% year-over-year for the week ended June 21, further reducing demand from utility providers.
As of June 23, European gas storage was 57% full, below the 5-year seasonal average of 66%. The Baker Hughes report noted a decline in active US nat-gas drilling rigs, falling by 2 to a total of 111, slightly below the recent 15-month high.
