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US Natural Gas Update: Futures Slide Nearly 3% on Growing Storage Surplus Outlook

-- US natural gas futures fell nearly 3% on Thursday ahead of the weekly storage report, as forecasts pointed to an expanding surplus.

Both the front-month Henry Hub contract and the continuous contract were down 2.90% to $2.64 per million British thermal units.

With the US Energy Information Administration set to report the Weekly Natural Gas Storage Report, forecasts expect a net injection of 96 billion cubic feet into storage, significantly above the prior week at 59 Bcf, and the corresponding week a year ago, at 88 Bcf, according to data compiled by Investing.com

Additionally, markets are moving lower due to weak residential and commercial demand amid "moderate and mixed spring conditions," which are leading to lower gas demand, according to NRG Energy.

Meanwhile, the Lower 48 dry gas output held steady at 107 Bcf per day, while LNG feedgas flows were near capacity at 18.9 Bcf per day.

On a bullish note, Golden Pass LNG in Texas exported its first cargo from its terminal in Sabine Pass on Wednesday. At full capacity, the facility is expected to export 18 million tons of LNG annually, adding significantly to the country's LNG exports amid rising global demand.

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