June Nymex natural gas prices closed down $0.044 (-1.64%) on Wednesday amid concerns that U.S. natural gas storage levels will rise significantly. The Energy Information Administration (EIA) anticipates an increase of 83 billion cubic feet (bcf) in weekly inventories, surpassing the five-year average of 63 bcf. As of April 17, U.S. natural gas stockpiles were already 7.1% above that average.
Despite lower prices, forecasts of below-normal temperatures across the eastern U.S. could increase demand for heating. U.S. dry gas production was at 109.9 bcf/day, reflecting a 2.9% year-over-year increase, while gas demand reached 73.8 bcf/day (+12.5% y/y). Additionally, damage to Qatar’s Ras Laffan plant, which supplies 20% of global LNG, may boost U.S. exports in response to reduced Middle East supplies.
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