NEW YORK: US natural gas futures eased about 1% to a one-week low on Thursday on rising output and forecasts for less demand next week than previously expected ahead of a federal report expected to show last week’s storage build was smaller than usual for a 10th time in 11 weeks.
Traders said recent storage builds have mostly been smaller than usual because several producers cut output earlier in the year after futures prices dropped to 3-1/2-year lows in February and March.
Higher prices in April and May, however, prompted some drillers, including EQT and Chesapeake Energy, to boost output.
Analysts forecast US utilities added 16 billion cubic feet (bcf) of gas into storage during the week ended July 19. That compares with an increase of 23 bcf in the same week last year and a five-year (2019-2023) average rise of 31 bcf for this time of year.
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