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On Friday, October Nymex natural gas prices closed up by +0.053 (+1.80%), marking a 1.5-week high. This uptick follows the Energy Information Administration (EIA) report indicating a smaller-than-expected inventory rise of +18 billion cubic feet (bcf) for the week ending August 22, compared to a consensus estimate of +27 bcf. Current US natural gas supplies are down -3.5% year-on-year.
As of August 27, US natural gas production was reported at 107.4 bcf/day, an increase of +3.8% year-on-year, while demand stood at 71.7 bcf/day, down -11.9% year-on-year. Additionally, the number of active US natural gas drilling rigs decreased by three to 122 rigs as of August 29, remaining close to a two-year high.
Supporting factors for natural gas prices include a reported +7.7% yearly increase in US electricity output for the week ending August 23, along with US natural gas inventories currently 5.0% above the five-year seasonal average, despite being lower than the year prior.
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