US natural gas futures rebounded in after-hours trading on Friday, following a severe monthly sell-off and shifting mid-August weather reports.
Both the front-month Henry Hub contract and the continuous contract gained 1.23% to $2.792 per million British thermal units.
Prices have declined since early July, when prices were pegged over $3/MMBtu.
Market sentiment softened through most of the day as above-average temperatures in major eastern population centers pointed to weaker cooling demand, while Freeport LNG maintenance reduced LNG feedgas demand and overall supplies remained ample.
Despite a smaller-than-expected storage build, inventories remain 6.5% higher than the five-year average, the US Energy Information Administration said Thursday, indicating plentiful supplies.
"There were no major shifts in the weather outlook or broader fundamentals to drive the market," Pinebrook Energy Advisors said, adding that traders seem comfortable with storage inventories and weaker LNG export demand, leaving prices "in consolidation mode" after the sharp losses earlier in the week.
Aegis Hedging said it saw forecast models turn sharply cooler in the Midwest, with Criterion projecting a 22.7-degree Fahrenheit decline across the forecast period.
Major population centers, including Chicago, are expected to remain below the 10-year average on nearly every day of the outlook, Aegis Hedging said, citing Commodity Weather Group data. The cooler eastern outlook contrasts with persistent heat in the West, where much of the West Coast and Rockies are forecast to average 4 to 8 degrees Fahrenheit above normal.
Barchart, citing BNEF data, said US Lower 48 dry gas production on Friday was a robust 112.7 billion cubic feet per day, up 3.4% from a year earlier.
Lower 48 state gas demand was estimated at 80.1 Bcf/d on Friday, up 0.2% over the year, and estimated LNG feedgas flows to export terminals were 17.9 Bcf/d, down 2.2% from the previous week.