Natural gas prices rose by 2.32% to ₹278.3, driven by a smaller-than-expected inventory withdrawal and forecasts of increased demand.
The U.S. Energy Information Administration reported a 2 billion cubic feet withdrawal from storage for the week ending November 22, 2024, reducing U.S. gas inventories to 3,967 bcf, 3.5% higher than last year and 7.2% above the five-year average.
Despite mild weather and lower heating demand last week, colder weather is expected to boost gas demand significantly. Gas flows to U.S. LNG export plants increased to an average of 13.5 bcf per day in November, supporting demand.
U.S. dry gas production is projected to decline slightly in 2024 to 103.3 bcf per day, but output is expected to rebound to 104.5 bcf per day in 2025. Natural gas markets saw short covering, with open interest declining by 10.38% to 17,603 contracts.
