Financial Wire

US Natural Gas Update: Futures Trade Flat Amid Ample Supplies, Subdued Near-Term Demand

-- US natural gas futures were flat on Wednesday, as robust supply and subdued near-term demand continued to weigh on prices.

The front-month Henry Hub contract and the continuous benchmark were up 0.04% at $2.60 per million British thermal units.

European natural gas futures continued to post declines amid de-escalation in the Middle East conflict, with US President Donald Trump signaling a quick resolution in the coming weeks.

For US markets, however, domestic factors were the key driver, with strong output, averaging around 107.2 billion cubic feet per day over the past few days, while residential and commercial demand is down by 5.0 Bcf per day on account of lower heating demand, according to NRG Energy.

US natural gas markets are broadly insulated from the Middle East conflict, since LNG facilities across the country are operating at capacity.

The market is expecting a 55 Bcf net injection in storage in the Energy Information Administration's weekly report, to be released on Thursday, compared with a 50 Bcf net injection last week, according to data compiled by Investing.com.

Weather forecasts remained bearish, with most parts of the country expected to experience above-normal temperatures from April 22 to April 28, weighing on natural gas demand, according to the National Weather Service.

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US Natural Gas Update: Futures Trade Flat Amid Ample Supplies, Subdued Near-Term Demand | Financial Wire