November natural gas futures managed a slight gain on Thursday, recovering from earlier losses, while December and other winter contracts fell despite a smaller-than-expected storage injection. The market remains under pressure due to unusually mild weather forecasts, which are dampening expectations for heating demand as winter approaches.
The storage surplus has narrowed to 35 billion cubic feet (Bcf), and liquefied natural gas (LNG) feedgas levels remain above 20 billion cubic feet per day. Additionally, there have been ten consecutive below-average injections, which typically would support prices, but the mild weather outlook is overriding these factors.
The market's cautious stance reflects the uncertainty surrounding heating demand, with traders closely watching weather patterns for any shifts that could alter the outlook. Despite the modest gains in November futures, the broader trend for winter contracts suggests lingering bearish sentiment.