On Friday, July Nymex natural gas closed at $3.46 per MMBtu, rising +0.005 (+0.15%), driven by a forecast of above-normal temperatures across much of the U.S. next month, which are expected to increase demand for natural gas to power air conditioning. The outlook for June 8-12 indicates above-average temperatures in the northern two-thirds of the country, further supporting this demand.
In terms of supply and production, U.S. dry natural gas production reached 110.6 billion cubic feet per day (bcf/day), a 2.0% increase year-over-year, while lower-48 state gas demand was reported at 67.7 bcf/day, down 1.9% year-over-year. Liquefied natural gas (LNG) net flows to export terminals were at 18.5 bcf/day, marking a 2.1% week-over-week increase. Additionally, the number of active natural gas drilling rigs remained at 125, down from a recent 2.5-year high of 134 rigs.
Further supporting prices, the Edison Electric Institute reported U.S. electricity output rose by 5.2% year-over-year for the week ending May 23 to 81,890 GWh. Despite a record production level, natural gas prices are expected to find medium-term support due to limited global LNG supplies, particularly following damage to Qatar’s Ras Laffan plant, which accounts for about 20% of the global LNG supply.
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.
