Bnef

Natural gas futures have steadied after a sharp sell-off and a gap lower, helped by cooler near-term weather revisions and stronger LNG flows. However, warm winter risk, high storage expectations and bearish technical structures continue to limit confidence in a sustained rally.

November natural gas futures moved lower early Thursday after failing to extend Wednesday’s recovery above the key round-number area. Mild weather, growing output and elevated storage expectations continue to limit buyer confidence ahead of the EIA inventory update.

Natural gas futures rallied after a lighter than normal EIA storage injection narrowed the market surplus and forced short sellers to cover. Traders are now watching whether fresh buying can sustain the move or whether momentum fades after the squeeze.