Natural gas prices plummeted on Tuesday, reaching a 9-month low due to cooler US temperature forecasts. The EIA raised its 2025 and 2026 US natural gas production forecasts, contributing to the decline in prices. Lower-48 state dry gas production and demand increased, while LNG net flows to US export terminals decreased slightly.

US electricity output rose, boosting demand for natural gas from utility providers. The weekly EIA report from last Thursday showed a bullish trend for natural gas prices, as inventories rose below expectations. Despite a slight decrease in active US natural gas drilling rigs, the number has risen significantly in the past ten months.

Rich Asplund did not have any positions in the mentioned securities. The information provided is for informational purposes only. This article was originally published on Barchart.com.

Read more at Yahoo Finance: Nat-Gas Prices Plunge on Cooler US Forecasts and EIA Production Forecast Increase