On Monday, July Nymex natural gas prices (NGN25) closed down by 3.87%, dropping by 0.149. This decline follows significant losses from Friday, attributed to a forecast of moderate summer heat in the eastern US, which may lower demand for natural gas from electricity providers.
As of Sunday, the Lower-48 states reported dry gas production at 106.1 billion cubic feet per day (bcf/day), an increase of 2.9% year-on-year, while gas demand was at 71.8 bcf/day, showing a decrease of 4.4% year-on-year. LNG net flows to US export terminals stood at 14.0 bcf/day, marking a 2.6% week-over-week rise.
In related developments, Baker Hughes indicated that the number of active US natural gas drilling rigs fell by 2 to 111 rigs, just below a 15-month high reached earlier in June. Additionally, natural gas inventories as of June 13 rose by 95 bcf, which was below expectations but above the 5-year average build for this period.
