On Monday, May Nymex natural gas closed up $0.011, or 0.39%, after recovering from a 7.25-month low. Forecasts for colder temperatures in the U.S. through April 10 contributed to short covering in nat-gas futures, potentially increasing heating demand.
Key data from BNEF indicated that U.S. dry gas production reached 110.4 billion cubic feet per day (bcf/day), up 2.8% year-over-year, while gas demand was at 72.9 bcf/day, down 6.8% year-over-year. The Ras Laffan LNG export plant in Qatar reported extensive damage, affecting 17% of its capacity, which may lead to increased U.S. nat-gas exports.
As of March 31, U.S. nat-gas inventories had risen by 36 bcf for the week ending March 27, which is well above the five-year average. Additionally, the number of active U.S. nat-gas drilling rigs increased by 3 to 130 in early April, slightly below the recent 2.5-year high of 134 rigs.
