August Nymex natural gas prices closed at $2.93 per million British thermal units on Wednesday, up $0.060 (2.09%). This increase is driven by forecasts of hotter weather across the Central US from July 27-31, which could elevate natural gas demand for electricity due to increased air-conditioning usage.
However, concerns surrounding Tropical Storm Bertha could impact liquefied natural gas (LNG) export facilities on the US Gulf Coast, potentially leading to reduced exports. In terms of production, the US lower-48 states reported dry gas output at 110.9 billion cubic feet per day, a 2.5% year-over-year increase, while gas demand reached 80.6 billion cubic feet per day, up 6.3% year-over-year.
Looking ahead, the weekly EIA report is expected to show a nat-gas inventory increase of 29 billion cubic feet, close to the five-year average of 30 billion cubic feet. As of July 10, nat-gas inventories were down 0.9% year-over-year but remained 6.4% above the five-year average.
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