March Nymex natural gas prices closed at $3.45 per MMBtu on Wednesday, rising by 4.65% following forecasts of persistent colder weather across the Northeast. This uptick is further amplified by expectations of a historical drawdown in U.S. natural gas inventories, with a consensus estimate predicting a decrease of 379 billion cubic feet for the week ending January 30, which would exceed the five-year average of 190 billion cubic feet.
As of Wednesday, U.S. dry gas production was recorded at 111.2 billion cubic feet per day (bcf/day), marking a year-over-year increase of 5.6%. Natural gas demand also surged to 115.6 bcf/day, a rise of 18.8% year-on-year. Additionally, active drilling rigs for natural gas climbed to 125, up by three from the previous week. Despite a current high in natural gas production, forecasts predict a decrease to 107.4 bcf/day by 2026.
