NEW YORK: US natural gas futures rose more than 2% on Thursday on a smaller-than-expected storage build last week, while traders assessed the impact on supply after oil and gas producers cut output due to Hurricane Francine.

Front-month gas futures for October delivery on the New York Mercantile Exchange were up 6.4 cents, or about 2.8%, to $2.335 per million British thermal units (mmBtu) as of 10:41 a.m. EDT (1341 GMT).

The US Energy Information Administration (EIA) said utilities added 40 billion cubic feet (bcf) of gas into storage during the week ended Sept. 6.

That was lower than the 48-bcf build analysts forecast in a Reuters poll and compares with an injection of 50 bcf during the same week a year ago and a five-year average (2019-2023) increase of 67 bcf for this time of year.

Even though storage builds have been smaller than average in recent weeks, the amount of gas in storage is still around 10% higher than usual for this time of year.

“This market is holding steady thus far as it attempts to predict the impact of Hurricane Francine on lost natural gas production where estimates vary widely to as high as 50%,” energy advisory firm Ritterbusch and Associates said in a note.

“However, the lost supply will likely prove modest within the overall US gas balances within this age of shale. It also appears that the storm has evaded key LNG export infrastructure in providing a supportive influence to the market,” Ritterbusch said.

Francine, which has been downgraded to a tropical depression, barreled into southeast Louisiana and southern Mississippi and Alabama on Thursday, pounding the region with heavy rains and gusty winds while threatening the Gulf Coast with dangerous flooding and widespread power outages.

The amount of natural gas flowing to US liquefied natural gas export plants was on track to slide further on Thursday with energy companies reducing feedgas to plants because of the storm, according to data from financial firm LSEG.