U.S. natural gas futures are trading lower as the market anticipates the U.S. Energy Information Administration’s weekly inventory report. The report, due at 10:30 a.m. ET, is widely expected to reveal a larger-than-usual build in natural gas storage, further widening the surplus compared to the five-year average.

Despite a slight warming trend in recent weather forecasts, this significant storage surplus is expected to continue exerting downward pressure on prices, according to Dennis Kissler of BOK Financial. He noted in a client advisory that the market's current position suggests potential for upside value, with liquefied natural gas (LNG) demand holding steady at just over 18 Bcf a day. Bargain hunters are reportedly seeing greater potential for price appreciation than depreciation at current levels.

As of this report, Nymex natural gas futures have fallen **