Natural gas prices rose for the third day, hitting a 1.5-week high after a report showed tighter supplies with inventories up +18 bcf, below expectations. Weather forecasts and increased US production remain factors affecting prices, with demand potentially decreasing due to cooler temperatures in certain regions.

US natural gas production is near record highs, with forecasts predicting an increase in production for 2025 and 2026. Lower-than-normal temperatures expected in early September could reduce demand for natural gas, impacting prices. Active US natural gas rigs recently reached a 2-year high, adding to the bearish sentiment.

Baker Hughes reported a slight decrease in active US natural gas drilling rigs, remaining just below the 2-year high. The electricity output in the US increased in the past week, potentially supporting gas prices. Despite bearish factors, the recent rise in prices suggests market uncertainty.

The weekly EIA report was bullish for natural gas prices, showing inventories below consensus and the 5-year average. European gas storage levels are slightly below the 5-year average, indicating adequate supplies. The mixed weather forecast and increased US production continue to influence natural gas prices.

Read more at Yahoo Finance: Nat-Gas Prices Underpinned by Shrinking US Inventories