On Thursday, March Nymex natural gas (NGH26) closed at +0.186 (+4.98%), following a larger-than-expected draw in weekly gas storage. The EIA reported a decline of 242 billion cubic feet (bcf) for the week ending January 23, compared to the anticipated reduction of 238 bcf.
Natural gas prices surged over 120% in the past week, driven by an Arctic blast affecting demand and production disruptions. As of January 26, lower-48 dry gas production reached 108.5 bcf/day (+3.1% year-over-year), with demand at 129.2 bcf/day (+33.2% year-over-year). Additionally, active US natural gas rigs remained stable at 122, below November’s peak of 130.
Despite the supportive weekly EIA report, US natural gas inventories were up 9.8% year-over-year, indicating an ample supply. In Europe, gas storage was reported at 44% full, compared to a 5-year seasonal average of 59% for this time of year.
