EIA Natural Gas Report Reveals A Draw Of -30 Bcf

On December 5, 2024, EIA released its Weekly Natural Gas Storage Report. The report indicated that working gas in storage declined by -30 Bcf from the previous week, compared to analyst forecast of -43 Bcf. Last week, working gas in storage decreased by -2 Bcf.

At current levels, stocks are 185 Bcf higher than last year and 284 Bcf above the five-year average for this time of the year. High storage levels serve as a negative catalyst for natural gas markets, although natural gas price fluctuations depend on a number of catalysts.

Natural gas  pulled back from session highs as traders reacted to the EIA report but quickly rebounded after the initial pullback. The storage draw missed analyst expectations, which is bearish for natural gas markets.

Traders will also stay focused on the changes in weather forecasts. The current demand for natural gas is high due to cold weather. Demand is expected to stay strong over the weekend, but forecasts show that the next week could be warmer.

From the technical point of view, natural gas found support in the $3.00 – $3.05 range and made an attempt to settle above the $3.10 level. If natural gas manages to stay above $3.10 despite the disappointing EIA report, it will move towards the nearest resistance level, which is located in the $3.20 – $3.25 range.

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