Nat-Gas Prices Climb on Smaller Storage Increase and Warmer Forecasts

Natural gas prices increased on Thursday after a smaller-than-expected storage increase was reported by the EIA. The weekly inventory rose +28 bcf, below estimates of +37 bcf but above the 5-year average increase of +26 bcf.

The Commodity Weather Group said forecasts shifted warmer, with above-normal temperatures expected in the western half of the US through August 13, potentially boosting demand from electricity providers to power increased air conditioning use.

US dry gas production on Thursday was 112.4 bcf/day, a +2.9% year-over-year increase, according to BNEF. However, lower-48 state gas demand fell -4.3% y/y to 81.6 bcf/day.