July Nymex natural gas (NGN25) closed at a 1-week high on Friday, rising by +0.107 (+2.91%), amid warmer weather forecasts in the U.S. that could increase demand from electricity providers.
Lower-48 state dry gas production was reported at 106.1 bcf/day (+4.6% y/y), while gas demand fell to 72.4 bcf/day (-1.0% y/y). LNG net flows to U.S. export terminals were at 13.6 bcf/day (+0.9% w/w). Total U.S. electricity output for the week ending May 31 decreased by -1.8% y/y to 76,711 GWh, despite a rise of +3.28% y/y over the past 52 weeks.
On June 6, Baker Hughes reported a rise in active U.S. nat-gas drilling rigs to 114, the highest in 15 months, while inventories as of May 30 increased by +122 bcf, exceeding expectations and the 5-year average of 98 bcf.
