Natural gas futures finished modestly lower on Thursday, with the December 2026 NYMEX contract slipping 1 cent to settle near $2.95 per MMBtu. For the second consecutive session, December tested the $3.00 level but failed to break through resistance, suggesting that the market is struggling to sustain any meaningful recovery from last week’s lows. Selling pressure was more pronounced further along the forward curve, with Summer 2027 declining 4 cents to $2.69 per MMBtu and Winter 2027-28 losing 5 cents to settle near $3.71 per MMBtu. Despite the recent attempts to rally, December remains 46 cents below its month-ago level.
This morning’s EIA storage report showed a 77-Bcf injection for the week ended October 30, lifting inventories to 3,801 Bcf. The build outpaced the five-year average, expanding the surplus to 54 Bcf and further improving the storage position heading into winter. Notably, the South Central region accounted for 40 Bcf of the injection, helping to narrow the regional deficit that has persisted despite relatively comfortable inventories nationally. With weather forecasts continuing to favor unusually mild conditions across much of the country, the fundamental backdrop offers little immediate support for a sustained recovery in winter futures.
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