After easing 1.4 cents to $2.738/MMBtu Tuesday, NYMEX May natural gas futures were little changed overnight ahead of Wednesday's open, with no significant revisions to the fundamental landscape.
At 6:40 a.m. ET (1040 GMT) the contract was 1.6 cents higher at $2.754/MMBtu after moving in a $2.734-$2.755/MMBtu range.
Rising temperatures should erase lingering heating demand ahead of the arrival of substantial cooling load associated with summer heat, helping the transition from an extended withdrawal season to some serious and sustained inventory rebuilding.
National Weather Service forecasts show above-average temperatures over most of the western US in the 6-10 day period spilling over into the bulk of the Midwest, the Northeast and the fringes of the mid-Atlantic in the 8-14 day period.
Natural gas inventories are currently 1,335 Bcf, or 725 Bcf below the prior-year level and 375 Bcf below the five-year average of 1,710 Bcf, after the EIA reported a 19 Bcf draw for the week to April 6, marking only the fourth time since 2010 that natural gas inventories logged a withdrawal on a national level in April.
