March Nymex natural gas closed on Friday at $3.05, up 1.70% (+0.051), driven by colder weather forecasts across the U.S. Midwest, which are expected to boost heating demand. The Commodity Weather Group reported predictions of below-normal temperatures lasting through February 24.
As of Friday, U.S. dry gas production stood at 113.4 bcf/day, reflecting a 12.5% increase year-over-year, while demand was at 91.6 bcf/day, a decline of 30.3% year-over-year. LNG net flows to U.S. export terminals were recorded at 19.8 bcf/day, an increase of 1.5% week-over-week. The EIA also raised its 2026 forecast for U.S. dry natural gas production to 109.97 bcf/day, up from 108.82 bcf/day previously.
Natural gas prices surged to a three-year high on January 28 due to a significant storm causing production disruptions and increased heating demand. Approximately 50 billion cubic feet of natural gas came offline because of freeze-ups. Active U.S. natural gas rigs remained unchanged at a two-and-a-half-year high of 133, following a rise from a four-year low of 94 rigs reported in September 2024.
