**Natural Gas Prices Rise Following EIA Inventory Report**
On Thursday, August Nymex natural gas prices closed up 0.55%, rising by 0.017. The U.S. Energy Information Administration (EIA) reported that natural gas inventories for the week ending July 18 increased by 23 billion cubic feet (bcf), falling short of the 27 bcf anticipated and below the five-year average of 30 bcf.
Despite the inventory boost, gains in natural gas prices were limited due to forecasts of cooler weather across the U.S., which is expected to reduce demand from electricity providers. As of July 18, U.S. dry gas production was reported at 107.1 bcf per day, up 2.9% year-over-year, while natural gas demand was at 82.4 bcf per day, a slight increase of 0.1% year-over-year.
Additionally, the Baker Hughes report indicated that the number of active U.S. natural gas drilling rigs rose by 9, reaching a 17-month high of 117 rigs as of July 18. This marks a considerable increase from a four-year low of 94 rigs recorded in September 2024, contributing to the pressure on natural gas prices amid rising production expectations.
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