EIA Natural Gas Storage Build Of +21 Bcf Misses Analyst Expectations

On August 8, 2024, EIA released its Weekly Natural Gas Storage Report. The report indicated that working gas in storage increased by 21 Bcf from the previous week, compared to analyst consensus of +22 Bcf.

At current levels, stocks are 248 Bcf higher than last year and 424 Bcf above the five-year average for this time of the year.

High inventory levels remain the key problem for the bulls. While the inventory build was below analyst expectations, stocks stay at high levels, which is bearish for natural gas markets.

Natural gas prices have started to move higher as traders reacted to the EIA report. The actual number was slightly below analyst expectations, which provided some support to the market.

The current demand for natural gas is moderate, but weather forecasts indicate that demand could rise over the next seven days. It remains to be seen whether it will be sufficient to push natural gas prices higher.

From the technical point of view, natural gas continues its attempts to settle above the resistance at $2.00 – $2.05. In case natural gas manages to stay above the $2.05 level, it will move towards the next resistance level at $2.25 – $2.30. RSI is in the moderate territory, so there is plenty of room to gain momentum. However, natural gas may need stronger catalysts for sustainable upside as stocks stay at high levels.

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