US Natural Gas Update: Futures Down Amid Bearish Gas Storage Data, Weather Forecasts
US natural gas futures held steady on Friday after weekly storage data landed broadly in-line with forecasts, offering little in the way of new direction for the markets.The front-month Henry Hub natural gas contract, along with the continuous contract, traded down 0.52% to $2.65 per million British thermal units.The Energy Information Administration reported a net injection of 50 billion cubic feet into storage for the week ended April. 3, which was above the prior week's 36 Bcf injection, but below the 57 Bcf that was injected into storage during the same week last year.Besides this, the actual figures were ahead of forecasts that were expecting a net injection of 41 Bcf for the week, according to data compiled by Investing.com.According to the Energy Buyer's Guide, the markets found no new directional momentum from these results, while noting that they expect next week's report to show a slightly smaller build, "before injections pick up in the following weeks."Globally, there is growing optimism about a potential peace deal with the US, Israel and Iran, as US President JD Vance departed to Pakistan, in order to hold talks with Iranian officials. Vance said that a "good faith effort" from the Iranian side could lead to a "successful" deal.Weather forecasts have continued to turn bearish, with most parts of the US expected to see above-normal temperatures from April 17 to April 23, according to the National Weather Service.US dry gas production saw a minor recovery, at 107.0 Bcf per day, after slipping from 108.6 Bcf per day to 106.6 Bcf per day earlier this week, according to NRG Energy.LNG feedgas to export terminals remains near capacity, estimated at 18.9 Bcf for Friday, as global supply and demand dynamics remain tight.