February Nymex natural gas closed down by -0.80% on Friday, settling lower but above a 3-month low. Abundant US supplies pushed prices down after storage levels were reported 3.4% above the 5-year seasonal average. However, colder US temperatures expected may boost heating demand, limiting losses.

Cheniere’s Corpus Christi and Freeport LNG export terminals faced reduced capacity due to issues, allowing US nat-gas storage levels to build. Additionally, US electricity output fell -13.15% y/y, putting further pressure on prices. On a positive note, lower US nat-gas production forecasts are expected to support prices.

US dry gas production was at 113.0 bcf/day (+8.7% y/y), with lower-48 state gas demand at 104.9 bcf/day (-2.4% y/y). LNG net flows to US export terminals were 19.8 bcf/day. The EIA report showed a smaller draw in nat-gas inventories, signaling ample supplies. European gas storage was 52% full, below the 5-year average.

Baker Hughes reported a decrease in the number of active US nat-gas drilling rigs, falling further below a recent high. The increase in gas rigs over the past year has been significant.

Read more at Yahoo Finance: Abundant Nat-Gas Supplies Pressure Prices