November Nymex natural gas closed down by 3.07% on Thursday due to a greater-than-expected build in weekly storage. The EIA reported a rise of 87 bcf in nat-gas inventories, above expectations and the five-year average. Mixed weather forecasts and higher US nat-gas production are bearish factors for prices.

US (lower-48) dry gas production was up 5.4% y/y, while state gas demand rose 3.4% y/y. Estimated LNG net flows to US LNG export terminals increased by 1.0% w/w. US nat-gas pipeline exports to Mexico hit a record 7.5 bcf/day in May, according to EIA data.

The weekly EIA report showed a bearish trend for nat-gas prices as inventories rose above expectations and the 5-year average. Inventories were up 0.6% y/y and 4.5% above the seasonal average. Gas storage in Europe was at 83% capacity, compared to the 5-year average of 92% for the time of year.

Baker Hughes reported an increase in active US nat-gas drilling rigs to 121, just below a 2-year high of 124 rigs. The number of gas rigs has risen over the past year from a 4.5-year low of 94 rigs reported in September 2024.

Read more at Yahoo Finance: Nat-Gas Prices Retreat as Weekly EIA Inventories Climb Above Expectations