On Tuesday, May Nymex natural gas closed down $0.003 (-0.10%), reaching a five-week low due to forecasts of above-normal U.S. spring temperatures which are expected to reduce heating demand and increase storage levels. Despite a brief recovery following forecasts of colder temperatures, prices remain under pressure.
Key data indicates U.S. dry gas production was 113.3 billion cubic feet per day (bcf/day), a 5.1% increase year-over-year, while gas demand dropped to 71.2 bcf/day (-7.3% year-over-year). Additionally, recent reports reveal that Qatar’s Ras Laffan LNG export plant, accounting for 20% of global supply, sustained damage that will take 3-5 years to repair, potentially impacting U.S. natural gas exports.
Notably, U.S. natural gas inventories decreased by 54 bcf for the week ending March 20, surpassing expectations, while natural gas storage in Europe was at 28% capacity, compared to the 5-year average of 41% for this time of year.
