Commodities
US Inventory Cushion Tightens as Natural Gas Futures Lose Steam
Natural gas futures initially surged on Thursday after data from the US Energy Information Administration revealed a smaller-than-expected government storage injection, indicating that the inventory cushion is tightening.
The build of 35 billion cubic feet into storage was lower than the expected 57 billion cubic feet, causing an initial buying frenzy in the market. However, this momentum was short-lived as the session progressed and prices eventually lost steam.
The smaller-than-expected injection reinforced signs that the US inventory cushion is shrinking, but post-report gains in natural gas futures ultimately faded.