Nymex natural gas prices dropped 3.77% on Wednesday after a recent rally due to cold-weather forecasts. Forecasts shifted warmer for the East Coast but colder for the West and Plains regions, impacting prices.

The EIA rescheduled this week’s inventory report to December 29 due to the Christmas holiday. Higher US nat-gas production is bearish for prices, with a forecast increase to 107.74 bcf/day by 2025.

US dry gas production was 112.9 bcf/day on Wednesday, with lower-48 state gas demand at 85.2 bcf/day. Estimated LNG net flows to US export terminals were 18.3 bcf/day. Gas prices were supported by a rise in US electricity output.

Last week’s EIA report showed a smaller-than-expected draw in nat-gas inventories, signaling adequate supplies. European gas storage is 68% full. Baker Hughes reported a steady number of active US nat-gas drilling rigs at 127.

Rich Asplund did not have positions in mentioned securities. Information in the article is for informational purposes only. Source: Barchart.com.

Read more at Yahoo Finance: Nat-Gas Prices Fall on Warmer Eastern Forecasts