The NYMEX October natural gas futures contract settled 3.5 cents higher Thursday at $2.797/MMBtu on some supportive weather forecasts and a storage build at the high end of analyst expectations.
The US Energy Information Administration Thursday morning reported an injection of 67 Bcf for the week ended Friday, which was within expectations of an injection between 64-68 Bcf.
EIA reported an 89-Bcf injection in the same week of 2011, with the five-year-average injection at 73 Bcf.
Phil Flynn, an analyst with Price Futures Group, said the report may have offered a price boost because of the five-day selloff that preceded it. Some weather forecasts showing some higher temperatures over the next two weeks also likely boosted prices, he said.
Kyle Cooper, an analyst with IAF Advisors, said Thursday's modest rally was likely just a "little bit of a rebound" following this week's price slump.
Cooper said he expects prices to stay within a range of $2.70/MMBtu and $3/MMBtu "until we get closer to winter and see what that winter demand is going to look like."
The contract traded between $2.747/MMBtu and $2.821/MMBtu.
