On August 18, September Nymex natural gas (NGU26) closed up +0.006 (+0.22%). The price increase is attributed to forecasts predicting warmer U.S. weather that could drive up natural gas demand, particularly for air conditioning, as temperatures are expected to remain above normal in the South and West through late August.
However, the U.S. Energy Information Administration (EIA) reported that natural gas storage levels are projected to reach 3,985 billion cubic feet (bcf) by the end of October, marking the highest level in 10 years and 5% above the five-year average. Additionally, U.S. dry gas production stood at 114.4 billion cubic feet per day (bcf/day) on Friday, a 4.0% annual increase, while gas demand was 81.6 bcf/day, reflecting a 1.3% annual rise.
Furthermore, a recent Baker Hughes report indicated an increase of four active U.S. natural gas drilling rigs, bringing the total to 128 rigs, just below the three-year high of 134 rigs reached in February 2026. This uptick in rigs combines with current storage levels to signal a robust supply of natural gas.
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