The number of rigs drilling for natural gas in the United States fell for a second straight week, dropping 2 from 728 to 726 this week, according to a report on Friday by oil services firm Baker Hughes.
The U.S. natural gas drilling rig count has gained in 14 of the last 18 weeks after bottoming at 665 on July 17, its lowest level since May 3, 2002, when there were 640 gas rigs operating. However, traders point out that despite cuts in drilling activity production has not come down as much as expected.
Yesterday, Energy Information Administration (“EIA”) reported, U.S. natural gas inventories increased by 20 billion cubic feet (“Bcf”) for the week ended November 13 which was in line with analysts’ expectations. At 3,833 Bcf, stocks were 347 Bcf higher than last year at this time and 419 Bcf above the five-year average.
The winter heating season has yet to kick in and traders are looking at a mixed forecasts from various sources. Some are predicting colder weather while others predicting moderate weather. However, headline weather news today is calling for a first big cold snap in the eastern U.S. just in time for the U.S. Thanksgiving holiday.
