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US Natural Gas Update: Futures Edge Higher Ahead of Weekly Storage Report, Softening Fundamentals

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US natural gas futures edged higher on Thursday, ahead of the weekly gas storage report later in the day, which is expected to come in broadly in line with averages.

The front-month Henry Hub contract and the continuous contract both gained 0.51% to trade at $2.939 per million British thermal units.

The US Energy Information Administration's Weekly Gas Storage Report is forecast to show a net injection of 45 billion cubic feet into storage, down from 61 Bcf last week, and 46 Bcf during the corresponding period a year ago, according to data compiled by Investing.com.

This is, however, in line with the five-year average for this period of 45 Bcf, leaving surplus inventories unchanged at 184 Bcf, according to Pinebrook Energy Advisors.

Meanwhile, natural gas fundamentals have continued to soften, with demand dropping by 1.8 Bcf per day, as gas-fired power retreats from its recent heat-driven highs, while output remains steady at 107.5 Bcf/d, according to NRG Energy.

US LNG export feedgas flows firmed up on Thursday, with estimates pointing to 17.20 Bcf, which was still below the 30-day moving average of 18.63 Bcf, as the Freeport LNG terminal entered into maintenance, according to the Bloomberg LNG Feedgas Model.

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