US natural gas futures were little changed at midday Thursday after government data showed a storage build that largely matched market expectations.
The front-month Henry Hub contract price and the continuous contract price both softened by 0.27% to $2.917 per million British thermal units.
The US Energy Information Administration reported Thursday that natural gas inventories increased by 32 billion cubic feet in the week ended July 17, within the range of analyst expectations compiled by Aegis Hedging of 20 Bcf to 39 Bcf.
Working gas in underground storage totaled 3,056 Bcf, the EIA said, leaving inventories 16 Bcf below year-ago levels but 183 Bcf above the five-year average of 2,873 Bcf.
Pinebrook Energy Advisors noted that the surplus to the five-year average was the largest since September, although inventories remained within the historical range.
The latest injection was the smallest of the injection season so far, as stronger seasonal cooling demand limited the volume of gas available for storage, analysts said.
On the supply side, US natural gas production was estimated at 109.2 Bcf per day, while net Canadian imports fell 13% to 4.7 Bcf/d, bringing total supply to about 114 Bcf/d, according to Gelber & Associates.
Power sector demand declined nearly 6% to 46.5 Bcf/d as storm-related cloud cover and cooler temperatures reduced near-term cooling demand, Gelber said.
NRG Energy said milder weather across key eastern demand centers contributed to the decline in electricity-sector gas consumption.
Weather forecasts point to continued mild conditions across the eastern half of the US in the near term, while above-normal temperatures are expected to persist across the Plains, Rockies and western US through the first week of August, NRG Energy said.
LNG demand remained supportive, with feedgas deliveries estimated at 18.1 Bcf/d on Thursday despite extended maintenance at Freeport LNG and the approach of Tropical Storm Bertha, Gelber said.
Bertha is expected to weaken quickly after landfall, limiting potential disruptions to natural gas demand if coastal power infrastructure and pipeline systems avoid significant outages.