S&P 500 — US Large Cap Index
FTSE 100 — UK Blue Chips
Euro Stoxx 50 — Eurozone Leaders
DAX 40 — German Equities
CAC 40 — French Market Index
Nikkei 225 — Japan Benchmark
Hang Seng — Hong Kong Index
Shanghai Composite — China Mainland
ASX 200 — Australian Market
TSX Composite — Canada Index
Nifty 50 — India Large Cap
STI Index — Singapore Market
KOSPI — South Korea Index
Bovespa — Brazil Equities
JSE Top 40 — South Africa Index
IPC Index — Mexico Market
January Nymex natural gas (NGF26) on Monday closed up by +0.071 (+1.46%).
Jan nat-gas prices on Monday added to last Friday’s sharp gains and posted a nearly 3-year nearest-futures high. Expectations of colder US temperatures, which will boost nat-gas heating demand, are lifting prices. Forecaster Atmospheric G2 on Monday said that forecasts shifted colder across the eastern two-thirds of the US for December 6-10, with temperatures trending even colder in the East for December 11-15.
Higher US nat-gas production is a bearish factor for prices. On November 12, the EIA raised its forecast for 2025 US nat-gas production by +1.0% to 107.67 bcf/day from September’s estimate of 106.60 bcf/day. US nat-gas production is currently near a record high, with active US nat-gas rigs recently posting a 2-year high.
US (lower-48) dry gas production on Monday was 111.8 bcf/day (+6.9% y/y), according to BNEF. Lower-48 state gas demand on Monday was 111.6 bcf/day (+2.7% y/y), according to BNEF. Estimated LNG net flows to US LNG export terminals on Monday were 18.4 bcf/day (-3.7% w/w), according to BNEF.
As a supportive factor for gas prices, the Edison Electric Institute reported November 19 that US (lower-48) electricity output in the week ended November 15 rose +5.33% y/y to 75,586 GWh (gigawatt hours), and US electricity output in the 52-week period ending November 15 rose +2.9% y/y to 4,286,124 GWh.
Last Wednesday’s weekly EIA report was bullish for nat-gas prices, as nat-gas inventories for the week ended November 21 fell by -11 bcf, a larger draw than the market consensus of -9 bcf but less than the 5-year weekly average of a -25 bcf draw. As of November 21, nat-gas inventories were down -0.8% y/y and were +4.2% above their 5-year seasonal average, signaling adequate nat-gas supplies. As of November 29, gas storage in Europe was 76% full, compared to the 5-year seasonal average of 86% full for this time of year.
Baker Hughes reported last Wednesday that the number of active US nat-gas drilling rigs in the week ending November 28 rose by +3 to 130 rigs, a 2.25-year high. In the past year, the number of gas rigs has risen from the 4.5-year low of 94 rigs reported in September 2024.
