EIA Natural Gas Storage Build Of +47 Bcf Misses Estimates

On September 26, 2024, EIA released its Weekly Natural Gas Storage report. The report indicated that working gas in storage increased by 47 Bcf from the previous week, compared to analyst consensus of +52 Bcf.

At current levels, stocks are 159 Bcf higher than last year and 233 Bcf above the five-year average for this time of the year.

Natural gas prices did not show a strong reaction to the report. It should be noted that futures traders are switching from October 2024 contract to November 2024 contract today.

From a big picture point of view, traders will stay focused on the potential impact of Hurricane Helene. The hurricane has already led to production shutdowns, which may provide support to natural gas prices.

However, cooler weather and power outages may put pressure on demand, so it remains to be seen whether natural gas prices will be able to gain additional upside momentum in the near term.

From the technical point of view, natural gas needs to settle above the $2.90 level to have a chance to gain additional upside momentum in the near term. If natural gas climbs above $2.90, it will head towards the resistance near the $3.10 level. RSI is in the moderate territory, so there is enough room to gain momentum in case the right catalysts emerge.

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