Nat-Gas Prices Rally on a Larger EIA Storage Draw

Core Viewpoint - Natural gas prices have increased due to a larger-than-expected draw in inventories and colder weather forecasts, which are likely to boost heating demand Group 1: Natural Gas Prices and Inventory - December natural gas prices rose by +1.72% following a reported inventory draw of -11 billion cubic feet (bcf) for the week ending November 21, exceeding expectations of -9 bcf [2][6] - As of November 21, natural gas inventories were down -0.8% year-over-year and were +4.2% above the 5-year seasonal average, indicating sufficient supply levels [6] Group 2: Production and Demand - US dry gas production reached a record high of 113.1 bcf/day, reflecting an increase of +8.3% year-over-year [4] - The number of active US natural gas drilling rigs rose to 130, marking a 2.25-year high, with a significant increase from a 4.5-year low of 94 rigs reported in September 2024 [7] Group 3: Weather Impact and Electricity Output - Colder weather forecasts for the eastern and southern US are expected to increase natural gas heating demand [2] - US electricity output rose by +5.33% year-over-year to 75,586 GWh for the week ending November 15, supporting natural gas prices [5]