On Monday, January Nymex natural gas prices closed at $4.00, down by 2.46% or $0.101, marking a seven-week low. This decline is attributed to warmer US weather forecasts for late December, which could lead to reduced heating demand and increased liquidation of nat-gas futures.
US nat-gas production reached approximately 113.1 billion cubic feet (bcf) per day, an 8.8% increase year-on-year. According to the EIA, the 2025 production forecast was raised to 107.74 bcf/day. Meanwhile, natural gas inventories fell by 177 bcf the week ending December 5, exceeding market expectations and suggesting adequate supply levels.
Baker Hughes reported a decline in active US nat-gas drilling rigs, with the number falling to 127 for the week ending December 12, just below the recent high of 130 rigs. This reflects a significant recovery from the low of 94 rigs reported in September.
