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US Natural Gas Update: Futures Slip on Bearish Storage Outlook, Milder Weather Forecasts

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US natural gas futures were down on Thursday, ahead of the weekly gas storage report, with forecasts pointing to a larger-than-normal net injection.

The front-month Henry Hub contract and the continuous contract both fell 3.42% to $3.102 per million British thermal units.

Markets are awaiting the US Energy Information Administration's Weekly Gas Storage Report later in the day, with forecasts pointing to an injection of 59 billion cubic feet of working gas into storage, compared to last year's 53 Bcf, and the five-year average for this period at 51 Bcf, according to NRG Energy.

Meanwhile, weather forecasts have softened in the eastern parts of the country, from July 16 to July 22, further easing near-term gas demand, according to the National Weather Service.

LNG export feedgas flows, however, edged higher, with estimates at 18.98 Bcf on Thursday, ahead of the 30-day moving average at 18.87 Bcf, according to the Bloomberg LNG Feedgas Model.

This has led to a tightening of fundamentals, with total gas demand rising 1.5 Bcf/d, reaching 110.9 Bcf/d, according to NRG Energy.

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