Natural gas futures reversed lower on Thursday after an early rally pushed the November NYMEX contract above $3.30 per MMBtu, its highest level in two weeks. The contract subsequently surrendered those gains and finished the session at $3.17, down 3 cents on the day and snapping a streak of four consecutive daily advances. Despite the reversal, November remains 20 cents higher over the past week. The balance of the Winter 2026–27 strip slipped by a penny to $3.37 per MMBtu, while Summer 2027 edged a penny higher to $2.97.
Early support came from a modest disruption to offshore natural gas production in the Gulf associated with the approaching hurricane, although the supply impact appears relatively limited.
This morning’s EIA storage report showed an 85-Bcf injection for the week ending October 2, the largest weekly build since late June. While the injection exceeded the comparable build from 2025, it fell short of the five-year average of 96 Bcf, narrowing the surplus to that benchmark for the eighth consecutive week. Inventories now stand just 68 Bcf above the five-year average, the smallest cushion since March, while the deficit to year-ago levels narrowed to 130 Bcf. Although the continued erosion of the storage surplus has provided some underlying support to prices, the market’s inability to sustain Thursday’s early rally suggests that concerns over comfortable inventories and a relatively mild start to the heating season continue to temper bullish momentum.
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