Natural Gas News: Futures Mixed as Traders Await EIA Storage Report

Natural Gas Futures Mixed Ahead of EIA Storage Report

Natural gas futures are showing mixed performance on Thursday as traders await the Energy Information Administration’s (EIA) weekly storage report, scheduled for release at 14:30 GMT. The market is currently pivoting around $2.143, a level that could determine the day’s price direction.

At 12:04 GMT, Natural Gas Futures are trading $2.121, up $0.004 or +0.19%.

Storage Report Expectations

NatGasWeather forecasts a build of +13 Bcf in this week’s EIA report. The prediction comes with some uncertainty due to strong cooling degree days (CDDs) counterbalanced by a 50% week-over-week increase in wind energy generation. Survey averages range between +11 and +19 Bcf, with +13 Bcf being the most notable estimate.

Weather Outlook

According to NatGasWeather, high-pressure systems will dominate the southwestern, central, and southeastern US through the weekend, bringing temperatures of 90s-100s. The eastern third of the country and eastern Texas will experience milder conditions initially. However, most of the US is expected to warm above normal late this weekend through next week, potentially driving strong demand.

Market Pressures

The market faced downward pressure on Wednesday following EQT Corp.’s reaffirmation of its 2024 sales volumes. This signals a continuation of supply curtailments implemented earlier this year to balance the market. EQT’s CEO, Toby Rice, also commented on the potential impact of a fracing ban, suggesting it could lead to “skyrocketing” gas prices but would be “bad for Americans.”

Political Considerations

With recent changes in the US political landscape, the industry is closely monitoring potential policy shifts. Rice emphasized the need for accountability in political statements regarding fracing, noting that a ban would significantly impact production.

Market Forecast

Given the mixed signals from weather forecasts, storage expectations, and production outlooks, the natural gas market appears poised for short-term volatility. The EIA report will likely be a key driver for price direction in the coming days. A bullish surprise in storage data could support prices, while a bearish report might reinforce recent downward pressure.