Nat-gas prices rose on Thursday due to a lower-than-expected build in inventories. US nat-gas production near record highs and cooler weather forecasts for the end of August are contributing to the decline in prices. Nat-gas inventories are down y/y but above the 5-year average, signaling ample supply.

US nat-gas production is increasing, with active rigs hitting a 2-year high. Lower-48 state gas demand is up, while LNG net flows to US export terminals are down. Electricity output in the US rose, supporting gas prices. Inventories are adequate, and European gas storage is slightly below the 5-year average.

Active US nat-gas drilling rigs fell slightly from a recent high. The number of rigs has increased over the past year. Rich Asplund did not have any positions in the securities mentioned. Information in this article is for informational purposes only and was originally published on Barchart.com.

Read more at Yahoo Finance: Nat-Gas Prices Climb on Lower-Than-Expected Inventory Build