At 13:01 GMT, Natural Gas Futures are trading $3.038, down $0.029 or -0.95%.
Why Didn’t the Bullish EIA Report Lift Prices
Thursday’s EIA storage data came in sharply below expectations, showing a +7 Bcf build versus estimates near +12–15 Bcf and a five-year average injection of +29 Bcf for this period. The miss was largely attributed to reduced wind power generation, especially in ERCOT, which boosted gas-fired electricity demand. Even so, the prompt-month contract settled Thursday at $3.067, down 0.32%, as traders shifted focus to cooling weather forecasts for the eastern half of the U.S. in late August.
Production Growth and Rising Rig Counts Weigh on Sentiment
Bearish supply-side factors continue to counterbalance bullish demand drivers. Lower-48 dry gas production stood at 108.7 Bcf/d on Thursday, up 5.7% year-over-year, while active U.S. gas rigs hit a two-year high of 124. Increased output has been a key reason prices fell to a 3.5-month low earlier this week, with the market wary of sustained production strength heading into the lower-demand shoulder season.
Cooling Demand Strong Now, But Market Eyes Later Slowdown
For the week of August 7–13, forecaster NatGasWeather sees a broad upper ridge dominating much of the U.S., bringing highs in the upper 80s to 100s, especially in the Southwest and Texas. National demand is expected to remain high for the next seven days, supported by LNG feedgas flows of 15.5 Bcf/d, up 10.1% week-on-week. Still, the market reaction has been muted as traders weigh strong near-term cooling demand against the prospect of easing weather-driven consumption after mid-month.