U.S. natural gas futures climbed on Thursday as updated weather forecasts painted a warmer picture for the coming weeks, boosting expectations for air conditioning demand. Traders positioned ahead of the Energy Information Administration's weekly inventory report, which typically moves markets when released.

The EIA data, due at 10:30 a.m. ET, is expected to show a 70 billion cubic feet injection into storage facilities, according to a Wall Street Journal survey of analysts. This would mark a decline from the 75 Bcf average build typically seen for this period, suggesting somewhat tighter market conditions.

A smaller-than-average build would reduce the storage surplus relative to the five-year average. The excess currently stands at 146 Bcf, down from 151 Bcf the prior week. NYMEX natural gas traded $3.304 per mm Btu, up 2.6% on the session.

The inventory report carries significant weight because it provides the most reliable snapshot of supply-demand balance in the U.S. market. Weather-driven demand forecasts often shift rapidly, making storage data a crucial reference point for utilities, producers, and hedge funds managing energy exposure.