EIA Natural Gas Storage Build Of +55 Bcf Misses Estimates

On October 3, 2024, EIA released its Weekly Natural Gas Storage Report. The report indicated that working gas in storage increased by 55 Bcf from the previous week, compared to analyst consensus of +57 Bcf. It should be noted that the inventory build is significantly below the five-year average of +98 Bcf.

At current levels, stocks are 127 Bcf higher than last year and 190 Bcf above the five-year average for this time of the year.

Natural gas  prices moved away from session highs as traders reacted to the report. Natural gas has been gaining ground in recent weeks, and it looks that some traders expected that the EIA report would be even more bullish.

The current demand for natural gas is low, and weather forecasts indicate that it will likely remain low in the upcoming days. However, traders have already started to prepare for winter and focus on the falling difference between current storage levels and the five-year average storage levels.

From the technical point of view, natural gas is trying to settle above the psychologically important $3.00 level. In case this attempt is successful, natural gas will head towards the next resistance, which is located in the $3.05 – $3.10 range. RSI is in the moderate territory, so there is plenty of room to gain upside momentum in case the right catalysts emerge.

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