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US Natural Gas Update: Futures Edge Higher Amid Bullish Storage Forecasts, Tropical Storm Arthur

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US natural gas futures edged higher on Thursday ahead of the weekly gas storage report, with forecasts pointing to a bullish inventory build, as Tropical Storm Arthur is expected to weigh on near-term US LNG exports and domestic gas-fired power demand.

Both the front-month Henry Hub futures contract and the continuous contract were up by 0.16% at $3.150 per million British thermal units on Thursday.

The storm is already driving heavy rainfall across the US Gulf Coast, covering regions that host most of the country's major LNG export facilities, thus impacting their operations, according to multiple news reports. At the same time, stormy conditions are generally expected to weigh on domestic power demand, which is, in turn, bearish for gas demand in the power sector.

Over two-thirds of the country is expected to see above-normal precipitation from June 25 to July 01, according to the National Weather Service, adding to the bearish pressures.

On Thursday, markets will be awaiting the US Energy Information Administration's Weekly Gas Storage Supplement, with forecasts expecting a 82 billion cubic feet injection into storage, which is significantly below the 108 Bcf injection last week, and the 95 Bcf build during the corresponding period a year ago, according to data compiled by Investing.com.

US LNG feedgas flows are expected at 19.17 Bcf on Thursday, which is above the 30-day moving average of 18.01 Bcf, according to the Bloomberg LNG Feedgas Model.

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