The continued surplus circumstances in storage and higher output levels in July contributed to yesterday’s -1.16% drop in natural gas prices, which ended at 195.6. A protracted heat wave over the United States through mid-July was predicted. Still, predictions of a smaller-than-usual weekly storage increase and plentiful supply dynamics kept the market under pressure.
Utility companies added 32 billion cubic feet (bcf) of gas to storage during the week ending June 28, according to data from the U.S. Energy Information Administration (EIA). The fact that gas stocks were almost 19% higher than usual for this time of year, indicating the continuous oversupply scenario in the market, masked this inventory rise, though.
Regarding production trends, the Lower 48 states of the United States have produced more gas than they did in June, with an average of 101.8 billion cubic feet per day (bcfd) so far in July compared to 100.2 bcfd.
This increase occurred Following a decreased drilling activity earlier in the year, during which prices fell to 3-1/2-year lows. The output is still behind the monthly record high of 105.5 bcfd that was achieved in December 2023, even with this spike.
