Natural gas futures hovered close to even early Thursday as traders awaited updated government inventory data that could shed light on how an apparent drop in production is impacting balances.

The April Nymex contract was off 0.8 cents to $1.921/MMBtu as of 8:36 a.m. ET. May was down 1.3 cents to $2.059.

Predictions for the U.S. Energy Information Administration’s (EIA) 10:30 a.m. ET weekly natural gas storage report point to a lighter-than-average withdrawal in the 30s to 40s Bcf following recent mild weather.

A Reuters poll of 13 analysts produced a median withdrawal estimate of 40 Bcf, with responses ranging from withdrawals of 32 Bcf to 71 Bcf. Withdrawal estimates submitted to Bloomberg as of Wednesday showed a median 36 Bcf and ranged from 31 Bcf to 43 Bcf.

NGI...