businessneutral
Winter's Chill Sends Natural Gas Prices Soaring
USAFriday, November 14, 2025
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Market Update
- December Nymex Contract: Closed up by 0.113, or 2.49%, on Thursday.
- Eight-Month High: Part of a month-long rally pushing prices to their highest point in eight months.
Factors Driving the Increase
- Colder Weather: Forecasters predict a chillier end to November, especially in the western US.
- Higher Demand: More people turning up their heat increases demand for natural gas.
Production vs. Demand
- Production Forecast: US Energy Information Administration (EIA) increased its 2025 forecast to 107.67 billion cubic feet per day.
- Current Production: 109.7 billion cubic feet per day, up 7.3% from last year.
- Demand: 82.7 billion cubic feet used on Thursday.
- LNG Exports: Up by 8.9% compared to the previous week.
Electricity Output
- Edison Electric Institute Report: US electricity output increased by 0.12% compared to last year.
- 52-Week Increase: Up by 2.84% over the past 52 weeks.
Storage Levels
- Weekly Increase: Inventories increased by 33 billion cubic feet for the week ended October 31.
- Market Expectations: Right on expectations but below the five-year average.
- Yearly Comparison: Inventories up by 0.4% compared to last year and 4.3% above the five-year seasonal average.
Drilling Activity
- Active Rigs: Increased by 3 to 128, the highest number in 2.25 years.
- Yearly Increase: Number of gas rigs has risen from a 4.5-year low of 94 rigs.
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