EIA Natural Gas Report Reveals A Draw Of -2 Bcf

On November 27, 2024, EIA released its Weekly Natural Gas Storage Report. The report showed that working gas in storage declined by 2 Bcf from the previous week, compared to analyst forecast of +3 Bcf. Last week, working gas in storage declined by -3 Bcf.

At current levels, stocks are 134 Bcf higher than last year and 267 Bcf above the five-year average of 3,700 Bcf. High storage levels remain a key problem for natural gas bulls.

Natural gas prices remained under pressure as traders reacted to the EIA report. The EIA data was slightly better than analysts expected as it revealed a surprise draw. However, the storage change was minimal, so it remains to be seen whether the report will provide material support to natural gas markets.

Traders will also stay focused on the fluctuations in weather forecasts. The current demand for natural gas is moderate. Weather forecasts show warmer trends, which is bearish for natural gas markets. In addition, some traders may be unwilling to initiate new positions ahead of the long weekend.

From the technical point of view, natural gas is trying to settle below the support at $3.20 – $3.25. In case this attempt is successful, natural gas will head towards the next support level, which is located in the $3.00 – $3.05 range.

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