Natural gas prices decline due to cooler US temperatures, ample supplies, and decreased electricity demand

From Yahoo Finance: 2025-06-25 15:35:00

July Nymex natural gas prices closed down by -3.70% on Wednesday, reaching a 2-week low. The decline is attributed to cooling US temperatures and plentiful nat-gas supplies. Additionally, geopolitical tensions eased with the Israel-Iran ceasefire, reducing the likelihood of disruptions in LNG shipments. Lower-48 state gas production and demand remained steady, while US electricity output decreased by -3.1% y/y.

Weekly EIA nat-gas inventories are expected to climb by 88 bcf, above the five-year average of +79 bcf. The recent decline in US electricity output negatively impacts nat-gas demand from utility providers. Nat-gas inventories were down -8.0% y/y and +6.1% above their 5-year seasonal average, indicating adequate supplies. In Europe, gas storage levels are lower than the seasonal average.

Baker Hughes reported a slight decrease in the number of active US nat-gas drilling rigs last week. Currently at 111 rigs, slightly below the 15-month high of 114 rigs. Nat-gas prices are pressured by cooler US temperatures and an abundance of supplies. Rich Asplund did not hold any positions in the mentioned securities.



Read more at Yahoo Finance: Nat-Gas Prices Pressured by the Outlook for Cooler US Temps