US natural gas futures edged higher in midday trading Thursday after weekly storage data showed a build broadly in line with expectations, while shifting weather and supply-demand fundamentals kept sentiment mixed.
Front-month Henry Hub futures and the continuous contract both rose by 1.40% to $2.901 per million British thermal units.
The US Energy Information Administration reported a storage build of 85 billion cubic feet for the week ended May 8, broadly matching analyst expectations of an 84-87 Bcf increase. The print was also in line with the five-year average injection of 84 Bcf.
Total working gas in storage rose to 2,290 Bcf. The surplus versus the five-year average remained largely unchanged at about 140 Bcf.
Compared with last year, inventories are roughly 2.3% higher and sit about 6.5% above seasonal norms, according to Trading Economics. The same week last year saw a larger injection of 109 Bcf.
NRG Energy noted that replenishments so far have lagged last year's pace, with the surplus versus 2025 narrowing from over 10% in March to about 3.5% currently.
Weather models from NatGasWeather.com pointed to a brief cooler spell across the Great Lakes, Ohio Valley, and Northeast into Friday, with lows in the upper 30s to 40s Fahrenheit.
That will be followed by a rapid warm-up late in the weekend into early next week, with highs expected to reach the 80s and 90s across the East, increasing cooling demand.
On the supply side, output started the week at 107.6 billion cubic feet per day and is forecast to decline toward 106 Bcf/d on Thursday, according to NRG Energy.
Demand trends were mixed. Power burn has declined by about 1.6 Bcf/d from Wednesday levels, while residential and commercial demand is expected to rise by 1.2 Bcf/d day over day, NRG reported.
LNG feedgas deliveries to major US export terminals have also softened from an April peak of 18.8 Bcf/d. Volumes have fallen to around 17 Bcf/d in May and are tracking toward a 15-week low near 15.9 Bcf/d amid maintenance activity at facilities including Golden Pass LNG and Freeport LNG, according to Trading Economics.