Summer Heat Fuels Natural Gas Price Rise Despite Record Production
Natural gas prices rose by 1.42% to Rs.264.8 as warm summer heat expectations offset concerns about abundant supply, according to Kedia Advisory.
The smaller-than-expected storage injection of 16 billion cubic feet during the week ended August 14, below market forecasts and last year's injection of 19 billion cubic feet, suggests stronger seasonal demand.
Total inventories rose to 3.169 trillion cubic feet, remaining 0.9% below the corresponding period last year but around 6.2% above the five-year average, indicating that overall supply remains comfortable.
The Energy Information Administration (EIA) expects US dry gas production to rise from a record 107.6 billion cubic feet per day in 2025 to 111.2 bcfd in 2026 and 116.0 bcfd in 2027, while domestic consumption is projected to increase from 91.9 bcfd in 2025 to 92.0 bcfd in 2026 and 94.8 bcfd in 2027.