Natural gas futures on Wednesday crept lower, following a steep drop the previous day, as traders mulled weather-driven demand concerns, stagnated liquefied natural gas (LNG) levels, and the potential for a higher storage injection with the federal government’s pending report Thursday morning.  

The November Nymex contract shed 3.4 cents day/day and settled at $2.527/MMBtu. The prompt month lost more than 23 cents on Tuesday.

December dipped a tenth of a cent to $3.117.

Spot gas prices declined as well, led lower by drops in West Texas and volatile California. NGI’s Spot Gas National Avg. fell 11.0 cents to $1.525.

“High storage, weak cash and weakening weather demand could make it difficult to stage a rally for a while, unless LNG is able to pick up the slack more...