-- US natural gas futures rose to their highest level in two weeks in midday Wednesday trading, supported by declining domestic production and robust liquefied natural gas feedgas flows.
Both the front-month Henry Hub contract and the continuous contract gained 1.08% to $2.73 per million British thermal units.
The market found additional support from a cooler late-April weather outlook.
According to the Wall Street Journal, citing EBW Analytics' Eli Rubin, daily heating demand is expected to bottom out on Thursday before adding roughly 5 billion cubic feet per day into early May.
Rubin also pointed to weaker weekly production readings and record LNG feedgas as key bullish drivers, though he cautioned that elevated storage surpluses could limit any sustained upside and make recent gains short-lived.
US output has fallen by about 3.9 Bcf/d over the past 15 days, reaching an 11-week low of 108.2 Bcf/d on Tuesday, according to Trading Economics. NRG Energy expects production to remain broadly steady near current levels.
On the demand side, LNG exports remain strong. Trading Economics said feedgas flows rose to 18.9 Bcf/d in April and are on pace to set a new monthly record, with NRG projecting export flows to hold near 19 Bcf/d.
Attention now turns to Thursday's US Energy Information Administration storage report. NRG Energy forecasts a 95 Bcf inventory build, above both last year's comparable week and the five-year average, signaling continued structural surplus despite recent tightening in daily balances.