US natural gas futures slip on NYMEX following larger-than-expected inventory injection

Natural gas futures on the New York Mercantile Exchange (NYMEX) retreated following the release of government data showing a higher-than-expected build in US gas storage.

Front-month gas contracts declined by 2.7% to settle at $2.727 per million British thermal units (MMBtu).

According to the US Energy Information Administration (EIA), working gas in storage increased by 36 billion cubic feet (Bcf) for the week. The build surpassed market expectations of a 30 Bcf injection as well as the five-year average build of 33 Bcf for this period.

The price pullback occurred despite lingering summer heat that has maintained elevated power-sector demand. However, a surge in wind generation—particularly in Texas—curbed natural gas consumption at power plants, putting downward pressure on prices.

N.Tebrizli

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