NG Futures Rebound Despite Storage Build
Natural gas futures rebounded from early losses on Thursday despite fading weather-driven demand and a larger-than-expected storage build. The price increase was attributed to lower production and strong liquefied natural gas (LNG) feedgas.
The daily gas price index showed that power burn dropped sharply, which may have contributed to the upward trend in futures prices. Additionally, the storage build topped expectations, but did not dampen the overall market sentiment.
According to the data, lower production and strong LNG feedgas provided support for the natural gas futures market. This unexpected turn of events came as a surprise to many analysts who had anticipated a decline in futures prices due to the larger-than-expected storage build.