On Friday, June Nymex natural gas (NGM26) closed at $2.99 per MMBtu, up 2.28% (+$0.066), reaching a six-week high. This increase is attributed to expectations of above-normal temperatures in the Rockies and East, which could boost demand from electricity providers for air conditioning.
The Energy Information Administration (EIA) reported that U.S. dry natural gas production is currently near a record high at 109.7 Bcf/day, up 3.2% year-over-year. Additionally, ongoing disruptions such as the closure of the Strait of Hormuz and damage to Qatar’s Ras Laffan plant, which accounts for 20% of global LNG supply, are projected to tighten global LNG supplies, potentially increasing U.S. nat-gas exports.
As of May 8, U.S. natural gas inventories were 6.5% above the five-year seasonal average. Active U.S. nat-gas rigs decreased by one to 128 rigs as of May 15, still below the 2.5-year high of 134 rigs recorded on February 27.
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