As analysts and traders mulled continuing signs of tightness in the supply/demand balance from the latest government inventory data, natural gas futures advanced several cents in early trading Friday. The October Nymex contract was up 6.3 cents to $4.704/MMBtu at around 8:50 a.m. ET.

NGI Morning Natural Gas Price & Markets Coverage

The Energy Information Administration (EIA) on Thursday reported a 20 Bcf injection into Lower 48 gas stocks for the week ended Aug. 27, a bullish print versus expectations. Inventories ended the period at 2,871 Bcf, versus 3,450 Bcf in the year-earlier period and a five-year average of 3,093 Bcf.

“Tightness in the South Central region remains the story du jour, with the 22 Bcf draw significantly tighter than the five-year and widening the gap to the five-year average to 9% at 948 Bcf,” analysts...