On Thursday, June Nymex natural gas prices rose by +0.120 (+4.53%) following a smaller-than-expected increase in U.S. natural gas storage. The EIA reported inventory levels rose by +79 billion cubic feet (bcf) for the week ending April 24, under the anticipated +83 bcf, contributing to the rally in prices.
As of April 28, U.S. dry gas production reached 110.5 bcf/day (+3.2% year-over-year), while demand was reported at 74.7 bcf/day (+9.6% year-over-year). Despite robust production and abundant supplies, expectations of below-normal temperatures and tighter global LNG supplies, particularly due to damages at Qatar’s Ras Laffan plant, are providing medium-term support for natural gas prices.
The number of active U.S. natural gas drilling rigs increased by +4 to 129 for the week ending April 24, remaining below the 2.5-year high of 134 rigs set in late February.
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