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US Natural Gas Update: Futures Edge Higher Amid Forecasts of Lower Gas Storage Injection

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US natural gas futures edged slightly higher on Wednesday, amid forecasts of a significantly lower gas injection into storage, with inventories already below prior year levels.

The front-month Henry Hub contract and the continuous contract both climbed 0.37% to $3.277 per million British thermal units.

Forecasts expect the natural gas storage build for the week ended July 03 to come in at just 57 billion cubic feet, which was way below last week's 87 Bcf injection, while inventories remain 23 Bcf below the prior year, according to a report by NRG Energy.

Meanwhile, power burn demand is expected to rise by 2 Bcf/d over the next two weeks, as above-normal temperatures blanket almost the whole of the country, barring the Northeast.

LNG export feedgas flows were expected at 18.44 Bcf on Wednesday, below recent trends and the 30-day moving average of 18.83 Bcf, according to the Bloomberg LNG Feedgas Model.

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