January Nymex natural gas (NGF25) on Monday closed lower by -0.066 (-2.01%)
Jan nat-gas prices settled moderately lower on Monday as US weather forecasts have moved warmer for the remainder of this month, which will reduce heating demand for nat-gas. Forecaster Maxar Technologies said Monday forecasts have shifted and moved warmer from coast to coast, including temperatures much above normal in the East from December 26-30.
Lower-48 state dry gas production Monday was 104.6 bcf/day (-1.0% y/y), according to BNEF. Lower-48 state gas demand Monday was 90.8 bcf/day (+5.6% y/y), according to BNEF. LNG net flows to US LNG export terminals Monday were 13.9 bcf/day (+10.5% w/w), according to BNEF.
An increase in US electricity output is positive for nat-gas demand from utility providers. The Edison Electric Institute reported last Wednesday that total US (lower-48) electricity output in the week ended December 7 rose +10.87% y/y to 83,412 GWh (gigawatt hours), and US electricity output in the 52-week period ending December 7 rose +1.96% y/y to 4,173,295 GWh.
Last Thursday’s weekly EIA report was bullish for nat-gas prices since nat-gas inventories for the week ended December 6 fell -190 bcf versus expectations of -168 bcf and a much larger draw than the 5-year average draw for this time of year of -71 bcf. As of December 6, nat-gas inventories were up +2.3% y/y and were +4.6% above their 5-year seasonal average, signaling ample nat-gas supplies. In Europe, gas storage was 81% full as of December 10, below the 5-year seasonal average of 83% full for this time of year.
Baker Hughes reported last Friday that the number of active US nat-gas drilling rigs in the week ending December 13 rose +1 rig to 103 rigs, modestly above the 3-1/2 year low from September 6 of 94 rigs. Active rigs have fallen since posting a 5-1/4 year high of 166 rigs in Sep 2022, up from the pandemic-era record low of 68 rigs posted in July 2020 (data since 1987).
On the date of publication,
did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy
here.
More news from Barchart
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
