US natural gas futures edged up about 1% on Thursday as a larger than expected storage draw and stronger demand outlook offset still recovering production.
The Energy Information Administration reported a 242 billion cubic feet withdrawal for the week to January 23, above forecasts and well above the five year average, after an Arctic blast boosted heating demand.
Weather forecasts now point to colder than normal conditions through mid February, supporting consumption expectations even if temperatures are less extreme than late January.
Production remains below recent highs, with average January output down from December records, although daily supply is gradually recovering as frozen wells return.
Support also came from rising gas flows to LNG export plants after storm related disruptions earlier in the week.
Some companies even imported gas into the US to take advantage of elevated prices, highlighting how tight market conditions remain despite the modest rebound in supply.
Source: Trading Economics