October natural gas futures rose Thursday despite the fact that the Energy Information Administration (EIA) reported an increase in working gas storage higher than what many traders were expecting. The prompt-month contract ventured north of $4 for a second straight regular trading session before closing the day at $3.980, up 4 cents from Wednesday. November futures added 2.3 cents to $4.068.

The EIA in its Thursday report said inventories for the week ended Sept. 2 increased by 64 Bcf, approximately 5-10 Bcf more than what the industry was expecting. Prices responded immediately. Just after the release of the data October futures traded at both the high, $3.999, and low, $3.920, of the session up to that point. After seesawing, the contract resumed moving higher.

Expectations going into the report were generally for a lower injection. A Reuters survey of 17 analysts showed an average 61 Bcf increase, and Ritterbusch and Associates was expecting a gain of 55 Bcf. Industry consultant Bentek Energy, however, forecast a build of 65 Bcf.

“We were expecting a build of 58 Bcf to 61 Bcf, and prices did dip to $3.920 right after the number came out,” said a New York floor trader. He added that compared to previous Thursday sessions following the release of the inventory report, Thursday’s response was “pretty tame.”

Citi Futures Perspective analyst Tim Evans called the report “slightly bearish” as the number came in just above most estimates. “The build of 64 Bcf was just above the midpoint of market expectations and a tick above the 63 Bcf five-year average,” Evans said. “This was not a major miss and may reflect a modestly larger-than-expected impact from Hurricane Irene on East Coast consumption for last week, rather than a bearish shift in the background supply/demand balance.”

The report showed a build in the East Region of 58 Bcf, an increase of 4 Bcf in the West Region, and the Producing Region added 2 Bcf.

Even with Hurricane Katia harmlessly spinning well off the East Coast, energy traders had more than enough to keep their eyes on weather-wise as Tropical Storm Nate continued to churn the waters in the southern Gulf of Mexico and Tropical Storm Maria slowly moved westward from its position well east of the Windward Islands. According to the National Hurricane Center, the cone projection would put Maria just off the Florida peninsula by Wednesday.

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