US natural gas prices pared earlier gains in after-hours trading Thursday after government data showed a smaller-than-expected weekly storage increase, reinforcing expectations that the market balance is tightening.
Both the front-month futures contract and the continuous contract rose 0.92% to settle at $2.747 per million British thermal units.
The US Energy Information Administration reported that working gas in underground storage increased by 28 billion cubic feet in the week ended July 24, below analyst expectations for a build of roughly 37 Bcf. Total inventories climbed to 3,084 Bcf, leaving stocks 32 Bcf below year-ago levels but 185 Bcf above the five-year average of 2,899 Bcf.
As of July 24, natural gas inventories were down 1.2% from a year earlier and 6.4% above the five-year seasonal average, indicating that supplies remain adequate despite recent market tightening.
The Energy Buyers' Guide noted that Thursday's 28-Bcf storage build was the smallest injection of the season, reflecting a tighter market balance driven by persistent heat and elevated power-sector demand. However, the market has largely shrugged off the supportive weather backdrop, as robust production and lower LNG feedgas demand, caused by continued maintenance at Freeport LNG, continue to weigh on prices.
Barchart, citing BNEF data, said US natural gas output rose by 0.3 Bcf on Thursday to 112.4 Bcf per day, and remained 2.9% above year-ago levels.
Lower-48 natural gas demand stood at 81.6 Bcf/d on Thursday, down 0.6 Bcf from the previous day and 4.3% below year-ago levels. Celsius Energy estimated power burn at 48.3 Bcf on July 29, down 1.2 Bcf from the prior day and 5.6 Bcf below the same day last year.
Looking ahead, the Commodity Weather Group said Thursday that above-normal temperatures are expected across the western half of the US through Aug. 13, potentially supporting regional cooling demand.
Meanwhile, estimated LNG net flows to US LNG export terminals remained steady above 18 Bcf/d on Thursday. Aegis Hedging said Corpus Christi LNG received authorization to flow feedgas to Midscale Train 7. The train is expected to add roughly 186 million cubic feet per day of feedgas demand once fully operational. Commissioning began in late June, and nominations to Corpus Christi have increased by roughly 100 MMcf/d this week.