EIA Natural Gas Storage Draw Of -223 Bcf Misses Expectations

On January 23, 2025, EIA released its Weekly Natural Gas Storage Report. The report indicated that working gas in storage declined by -223 Bcf from the previous week, compared to analyst forecast of -244 Bcf. In the previous week, working gas in storage declined by -258 Bcf.

At current levels, stocks are -57 Bcf less than last year and +21 Bcf above the five-year average for this time of the year. The difference between natural gas stocks and the five-year average has been trending down in recent weeks, which served as an additional positive catalyst for natural gas markets.

Natural gas moved away from session highs as traders reacted to the report. The storage draw missed analyst estimates, so some traders may decide to take profits off the table after yesterday’s strong rebound.

The current demand for natural gas is high due to cold weather. However, traders will also focus on forecasts, which show that weather would be warmer in early February.

From the technical point of view, natural gas is trying to settle above the resistance at $3.95 – $4.00. In case this attempt is successful, natural gas will move towards the next resistance level at $4.25 – $4.30. On the support side, a move below the $3.90 level will open the way to the test of the support at $3.55 – $3.60.

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