November Nymex natural gas closed up by +2.38% on Friday, recovering from a 3-week low. Short-covering due to colder US weather forecasts boosted prices. US nat-gas production is at a record high, with active rigs near a 2-year high. Electricity output rose, but inventories are adequate, signaling enough supply.

US dry gas production was up 3.7% y/y on Friday. Lower-48 state gas demand decreased by 6.0% y/y. Estimated LNG net flows to US LNG export terminals rose by 2.3% w/w. Gas prices were supported by rising electricity output but faced pressure from high production levels and adequate inventories.

The weekly EIA report showed a rise in nat-gas inventories, but below market consensus and the 5-year average. Gas storage in Europe was at 83% full, below the 5-year average. Active US nat-gas drilling rigs increased to 121, just below the 2-year high. Gas rigs have risen from a 4.5-year low.

Read more at Yahoo Finance: Nat-Gas Prices Rebound as US Weather Forecasts Cool