May Nymex natural gas closed at $2.52 per million British thermal units on Tuesday, showing a rise of 0.35%. This uptick comes amid forecasts for below-normal temperatures across the U.S. until May 2, which could increase heating demand for natural gas.
As of April 17, U.S. natural gas inventories were reported at 7.1% above the five-year seasonal average, indicating abundant supplies; production is currently near record highs with 110.0 billion cubic feet per day (bcf/day), up 3.1% year-over-year. In contrast, estimated LNG net flows to U.S. export terminals decreased to 19.3 bcf/day, a 3.9% drop from the previous week.
The ongoing closure of the Strait of Hormuz is expected to boost U.S. natural gas exports as it limits Middle Eastern supplies. Additionally, repairs at Qatar’s Ras Laffan plant, which accounts for approximately 20% of global LNG supply, are anticipated to take three to five years, further tightening global LNG supplies.
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