U.S. natural gas futures slipped on Thursday, retreating after two days of gains that had been fueled by a hotter‑weather forecast and a weaker‑than‑expected weekly storage injection. Henry Hub and Nymex contracts fell 1.7 percent to $3.278 per mmBtu as traders weighed the new data. This pullback follows a brief rally that lifted prices by nearly two percent earlier in the week.

Eli Rubin of EBW Analytics explained that the South Central storage level was 41 Bcf below the same‑time‑last‑year figure, tightening regional supplies even without a heat wave. The data suggest that the market may remain tight into early summer, keeping prices on the back of a persistent inventory squeeze. Investors will watch the upcoming monthly report for confirmation of this trend.

With July delivery contracts down by 1.7 percent, traders recalibrate risk profiles amid a backdrop of cooling inventory data. The decline signals that the earlier optimism may have been overstated, and it underscores the importance of monitoring storage trends as the summer heating season approaches. Market participants may tighten hedging strategies to protect against potential price swings in the near term.