Nymex natural gas prices closed up +2.48% on Friday, reaching a 1-week high due to forecasts of colder US weather. Temperatures are expected to drop in various regions, potentially increasing demand for natural gas for heating purposes.

Despite the rise in prices, higher US natural gas production remains a bearish factor. The EIA recently increased its forecast for 2025 production to 107.67 bcf/day. Current production levels are near a record high, with active rigs hitting a 2-year peak.

US natural gas production and demand statistics show a significant increase in production but a decrease in demand. Additionally, estimated LNG net flows to US export terminals have slightly declined, impacting the market dynamics.

The Edison Electric Institute reported a significant rise in US electricity output, which could support gas prices. However, the weekly EIA report showed a larger-than-expected draw in natural gas inventories, signaling adequate supply levels.

Baker Hughes reported an increase in active US natural gas drilling rigs, nearing a 2.25-year high. The increase in rigs over the past year indicates a shift from a low point in September 2024.

Read more at Yahoo Finance: Colder US Weather Forecasts Lift Nat-Gas Prices