US Natgas Prices Fall Ahead EIA Data

US natural gas futures trimmed earlier losses to trade around $2.83 per MMBtu on Thursday after the EIA reported a storage build broadly in line with expectations, while LNG feedgas flows continued to weaken during the spring maintenance period. Energy firms injected a near-normal 85 billion cubic feet of gas into storage last week, matching forecasts and close to the five-year average increase of 84 billion cubic feet. Total inventories rose to 2.290 trillion cubic feet, about 2.3% above year-ago levels and 6.5% above the seasonal average. LNG feedgas to major US export facilities has dropped from an April record of 18.8 billion cubic feet per day to around 17.0 bcfd in May, with further declines to a 15-week low near 15.9 bcfd due to maintenance at plants including Golden Pass and Freeport LNG. Domestic production has also eased slightly to 109.2 bcfd so far in May, while weather forecasts point to mostly normal conditions through late May.

US natural gas futures fell to $2.8116 per MMBtu ahead of the weekly federal storage report, with markets expecting energy firms to have added a near-normal 85 billion cubic feet of gas into storage last week. That compares with an injection of 109 billion cubic feet during the same week last year and a five-year average build of 84 billion cubic feet. If confirmed, total stockpiles would rise to 2.290 trillion cubic feet, around 2.3% above year-ago levels and 6.5% above the five-year average. Production has softened in recent weeks as some producers, including EQT, curtailed output due to persistently weak spot prices. Meanwhile, gas flows to major US export facilities declined from a monthly record due to seasonal maintenance work at several plants, including Freeport LNG in Texas and Cameron LNG in Louisiana.

US natural gas futures rose to around $2.88 per MMBtu, moving back near a six-week high, as declining production and improved demand expectations continued to support prices. Output has softened in recent weeks as some energy companies, such as EQT, curtailed output due to persistently low spot prices. Forecasts showed gas demand across the Lower 48 states, including exports, averaging around 98.9 bcfd this week and next, with the latest projections revised slightly higher from the previous outlook. Meanwhile, gas flows to major US export facilities declined from a monthly record due to seasonal maintenance work at several plants, including Freeport LNG in Texas and Cameron LNG in Louisiana. Investors now await the weekly storage report, which is expected to show that the surplus in inventories relative to the five-year average remained largely unchanged.