Core Insights - Natural gas prices in the US have recently increased, reaching a one-week high due to forecasts of above-average temperatures leading to higher demand for electricity [1] - US natural gas production is at a near-record high, with the EIA raising its 2025 production forecast by 0.2% [2] - The number of active natural gas drilling rigs has slightly decreased, but remains higher than the previous year's low [6] Production and Demand - US dry gas production was reported at 108 billion cubic feet per day (bcf/day), reflecting a year-over-year increase of 6.4% [3] - Lower-48 state gas demand was recorded at 69.8 bcf/day, up 4.4% year-over-year [3] - Estimated LNG net flows to US export terminals reached 15.8 bcf/day, marking a week-over-week increase of 10.3% [3] Electricity Output - US electricity output for the week ending September 20 rose by 2.3% year-over-year to 85,663 GWh, supporting natural gas prices [4] - Over the past 52 weeks, electricity output increased by 2.85% year-over-year to 4,267,164 GWh [4] Inventory and Storage - Natural gas inventories rose by 75 bcf for the week ending September 19, slightly above market consensus but below the 5-year average [5] - As of September 19, inventories were up 0.5% year-over-year and 6.1% above the 5-year seasonal average, indicating sufficient supply [5] - European gas storage was reported to be 82% full, compared to a 5-year average of 89% for this time of year [5] Rig Count - The number of active US natural gas drilling rigs decreased by one to 117 rigs, remaining below the 2-year high of 124 rigs [6] - The current rig count has increased from a 4.5-year low of 94 rigs reported in September 2024 [6]