09:25 AM EST, 03/06/2024 (MT Newswires) -- Natural gas edged higher early on Wednesday despite mild forecasts as producers lower output amid swollen inventories.

Gas for April delivery was last seen up US$0.01 to US$1.96 per million British thermal units.

The price of the fuel is up 24% since touching a near four-year low on Feb.20 as Chesapeake Energy (CHK) and EQT (EQT) cut back on production with inventories last seen 26.5% above the five-year average with just three weeks remaining in the heating season.

"We remain cautious that natural gas may be rising too far, too fast as storage surpluses (at eight-year highs) add another 175 Bcf in the US and approach 900 Bcf across North America later this month. Higher natural gas prices also weaken power sector demand and encourage producers to bring curtailed supply back online sooner," EBW Analytics Group noted.

Long-term forecasts from the National Weather Service see little prospect of higher demand, with all states expected to see seasonal or better temperatures over the next six to 10 days.