August Nymex pure gasoline (NGQ25) on Friday closed up +0.016 (+0.52%).

Aug nat-gas costs recovered from early losses Friday and settled greater after US climate forecasts shifted to hotter, which might enhance nat-gas demand from electrical energy suppliers for air con utilization.  Forecaster Atmospheric G2 stated Friday that forecasts shifted hotter throughout the central and japanese US for August 4-8.  

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Nat-gas costs on Friday initially moved decrease on power in US nat-gas output with latest manufacturing up year-over-year.  As well as, expectations for even greater US nat-gas manufacturing are additionally weighing on nat-gas costs after Friday’s weekly report from Baker Hughes confirmed that the variety of energetic US nat-gas drilling rigs within the week ending July 25 rose by +5 to a virtually 2-year excessive of 122 rigs.

Decrease-48 state dry gasoline manufacturing on Friday was 107.2 bcf/day (+3.1% y/y), based on BNEF.  Decrease-48 state gasoline demand on Friday was 80.9 bcf/day (+0.9% y/y), based on BNEF.  Estimated LNG web flows to US LNG export terminals on Friday had been 14.7 bcf/day (-5.4% w/w), based on BNEF.

A rise in US electrical energy output is optimistic for nat-gas demand from utility suppliers.  The Edison Electrical Institute reported Wednesday that whole US (lower-48) electrical energy output within the week ended July 19 rose +2.1% y/y to 99,373 GWh (gigawatt hours), and US electrical energy output within the 52-week interval ending July 19 rose +2.4% y/y to 4,251,059 GWh.

Thursday’s weekly EIA report was bullish for nat-gas costs since nat-gas inventories for the week ended July 18 rose +23 bcf, beneath the consensus of +27 bcf and the 5-year common of +30 bcf for the week.  As of July 18, nat-gas inventories had been down -4.8% y/y, however had been +5.9% above their 5-year seasonal common, signaling sufficient nat-gas provides.  As of July 22, gasoline storage in Europe was 66% full, in comparison with the 5-year seasonal common of 74% full for this time of yr.

Baker Hughes reported Friday that the variety of energetic US nat-gas drilling rigs within the week ending July 25 rose by +5 to a virtually 2-year excessive of 122 rigs.  Previously ten months, the variety of gasoline rigs has risen from the 4-year low of 94 rigs reported in September 2024. 

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