June Nymex natural gas prices closed at $2.857 per MMBtu on Wednesday, up 0.74%. The increase in prices is driven by forecasts of warmer weather across the Midwest and Southwest, which are anticipated to boost demand from electricity providers for air conditioning into mid-May.
As of May 9, US dry natural gas production reached 109.8 billion cubic feet per day (bcf/day), a 3.1% year-over-year increase, while gas demand hit 67.8 bcf/day, up 6.0% year-over-year. The Energy Information Administration (EIA) predicts national gas inventories have risen by 91 bcf for the week ending May 8, exceeding the five-year average of 84 bcf for this time of year. In contrast, natural gas drilling rigs fell to 129, remaining slightly below a 2.5-year high of 134 rigs.
In addition, global LNG supply dynamics are tightening, with damage reported at Qatar’s Ras Laffan plant, which accounts for about 20% of the global LNG supply. The ongoing closure of the Strait of Hormuz due to geopolitical tensions is also expected to support US natural gas exports amid reduced supplies from the Middle East.
5 Stocks Our Experts Predict Could Double In the Next Year
By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.
