Market Update: May 1, 2024

May settled on Friday, April 26, and the first day with June as the prompt month saw settlements over $2/mmBtu due to the increase in LNG feedgas and lower production. However, prices retreated as the market continued to be weighed down by healthy supply.

The latest storage report from the EIA stated an increase of 92 BCF. The current inventory level now sits at 2.425 TCF, which is 22.1% higher than last year and 37% higher than the 5-year average.

According to Baker Hughes, the latest rig count decreased by six to 613 total rigs. Oil rigs fell by five while gas rigs fell by one. One year ago, the total rig count stood at 755 rigs.

This week’s additional graphic shows how natural gas consumption in the U.S. has increased by an average of 4% annually since 2018. In 2023, the highest amount of natural gas consumed in the U.S. reached 89.1 Bcf/d. From March 2023 through November 2023, monthly natural gas consumption set new records every month as demand for electric power generation increased, driven by the replacement of coal-fired generators with natural gas-fired ones.