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US Natural Gas Update: Futures Slide Despite Bullish Weather Forecasts, Ahead of Gas Storage Report

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US natural gas futures edged lower on Thursday, despite supportive weather conditions, ahead of the weekly gas storage report later in the day.

Both the front-month Henry Hub contract and the continuous contract declined 2.10% to $2.755 per million British thermal units.

Weather forecasts remained supportive, with almost the entire country, except for the westernmost regions, expected to see above-normal temperatures from August 27 through September 2, according to the National Weather Service.

Markets were awaiting the US Energy Information Administration's weekly natural gas storage report on Thursday, with forecasts pointing to a 15 billion cubic feet injection, down sharply from 36 Bcf last week and in line with the 15 Bcf increase recorded a year earlier, according to data compiled by Investing.com.

Meanwhile, domestic natural gas output decreased by 0.6 Bcf/d day-over-day, to 107.8 Bcf/d, while total demand too slid due to weaker power burn demand, according to NRG Energy.

US LNG export feedgas flows were expected to slide further to 17.52 Bcf/d on Thursday, compared to the 30-day moving average of 17.97 Bcf/d, according to the Bloomberg LNG Feedgas Model.

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