EIA Natural Gas Report Reveals A Surprise Storage Draw Of -3 Bcf

On November 21, 2024, EIA released its Weekly Natural Gas Storage report. The report indicated that working gas in storage declined by 3 Bcf from the previous week, compared to analyst forecast of +5 Bcf. Last week, working gas in storage increased by +42 Bcf.

At current levels, stocks are 141 Bcf higher than last year and 239 Bcf above the five-year average for this time of the year.

Natural gas  continued to move higher after the release of the bullish EIA report. A surprise storage draw may provide additional support to natural gas markets in the near term.

Traders will also stay focused on weather forecasts, which have provided material support to natural gas markets in recent trading sessions. The current demand for natural gas remains low, but weather forecasts show a colder pattern, which is bullish for natural gas markets.

From the technical point of view, natural gas prices are trying to settle above the $3.40 level. Taking a look at the daily chart, RSI remains in the moderate territory despite the strong rally, so there is enough room to gain additional momentum in the near term. A move above the $3.40 level will push natural gas towards the resistance at $3.55 – $3.60.

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