-- US natural gas futures edged lower in after-hours trading on Friday as forecasts for milder weather across much of the country weighed on heating demand expectations.
The front-month Henry Hub contract and the continuous contract both slipped 0.64% to $2.653 per million British thermal units.
Weather outlooks remained a key bearish driver. Forecaster Commodity Weather Group projected above-average temperatures across the eastern half of the US through Apr. 19, reducing late-season heating demand.
Seasonal "shoulder period" conditions also pressured the physical market. The US Energy Information Administration said the Henry Hub spot price fell $0.19 to $2.80/MMBtu in the week ended Wednesday, down from $2.99/MMBtu the prior week, as broadly warmer temperatures kept consumption subdued.
Demand indicators reflected the softer conditions. Lower-48 gas demand was estimated at 68.3 billion cubic feet per day on Friday, down 9.7% from a year earlier, according to Barchart, citing data from BNEF.
On the supply side, production showed a modest day-over-day recovery to generally strong production levels. Output rose to 107.0 Bcf/d after falling earlier in the week from 108.6 Bcf/d to 106.6 Bcf/d, according to NRG Energy. Separate BNEF data cited by Barchart put Lower-48 dry gas production higher at 111.3 Bcf/d, up 3.9% year over year.
LNG demand remained robust. Feedgas flows were near capacity at an estimated 18.9 Bcf/d, NRG said, reflecting a still-tight global supply-demand balance. However, export volumes eased slightly, with LNG vessels carrying 141 Bcf in the week ended Apr. 8 across 37 tankers, down 8 Bcf and 2 tankers from the previous week, according to EIA data.
On Thursday, EIA reported a 50 Bcf net injection for the week ended Apr. 3, broadly in line with the 53 Bcf build in the same week last year but well above the five-year average injection of 12 Bcf. Total inventories stood 89 Bcf above year-ago levels and 87 Bcf higher than the five-year historical average.