February Nymex natural gas prices rose sharply on Monday, closing up +0.240 (+7.57%) due to forecasts for colder weather in the U.S. from January 17-21, which are expected to increase heating demand. This comes after last Friday’s prices dipped to a 2.5-month low, driven by warmer temperature predictions.
As of January 10, U.S. dry gas production was reported at 113.8 bcf/day, an increase of 8.8% year-over-year, while gas demand stood at 101.1 bcf/day, down 6.1% year-over-year. Additionally, the Edison Electric Institute noted a year-over-year rise of 6.7% in electricity output for the week ending January 3.
Nat-gas inventories for the week ended January 2 fell by 119 bcf, exceeding market expectations, and are currently 3.5% lower year-over-year. Baker Hughes reported a slight decrease in active U.S. nat-gas drilling rigs to 124, down from a high of 130 in late November.
