The NYMEX September natural gas futures contract settled Wednesday at $4.003/MMBtu, 0.9 cents above Tuesday's $3.994/MMBtu close.
"We see prices chopping sideways, with a risk of a new low if temperatures moderate," Tim Evans, an analyst with Citi Futures Perspective, said.
The market impulse was driven on Wednesday by a mix of weather and storage, Gelber & Associates analyst Pax Saunders said. The contract was backed by continuing heat in the South and some above-normal temperatures in the central US, which are expected to reappear in the about 10 days, he said.
EIA on Thursday is expected to estimate a build to natural gas storage stocks between 34 Bcf and 38 Bcf for the week that ended Friday, according to the consensus view of industry analysts
"The early storage injection sentiment appeared to be flat to last year's 36-Bcf injection for the same week," Saunders said.
Gelber & Associates analysts estimate support would remain at $3.893/MMBtu and resistance between $4.069/MMBtu and $4.12/MMBtu.
The contract traded between $3.980/MMBtu and $4.081/MMBtu on Wednesday.
