Natural gas prices hit 6-month low due to increased inventories and cooler temperatures

From Yahoo Finance: 2025-06-26 15:18:00

Natural gas prices closed sharply lower by -3.70% on Thursday, hitting a 6-month low due to a larger than expected increase in inventories reported by the EIA. Cooler temperatures forecasted in the US are expected to reduce demand from electricity providers. Geopolitical tensions easing also contributed to the bearish trend.

US natural gas production and demand figures were reported by BNEF, with production up 2.7% year-over-year and demand down 1.2% year-over-year. LNG net flows to US export terminals increased by 4.0% week-over-week. A decline in US electricity output negatively impacts natural gas demand from utility providers.

The weekly EIA report showed a bearish trend for natural gas prices, with inventories rising above expectations. Despite being down -6.6% year-over-year, inventories were +6.6% above their 5-year average, signaling ample supply. European gas storage was also reported at 57% full, below the 5-year seasonal average of 66%.

Baker Hughes reported a slight decrease in active US natural gas drilling rigs, indicating a slight decline in drilling activity. Gas rigs have increased from a 4-year low in September 2024. Rich Asplund did not have positions in securities mentioned. Information in the article is for informational purposes only.

Read more: Nat-Gas Prices Fall to 6-month Low on Bearish EIA Report and Cooler Temps