EIA Natural Gas Storage Build Of +58 Bcf Exceeds Estimates

On September 19, 2024, EIA released its Weekly Natural Gas Storage Report. The report indicated that working gas in storage increased by 58 Bcf from the previous week, compared to analyst consensus of +53 Bcf.

At current levels, stocks are 194 Bcf higher than last year and 274 Bcf above the five-year average for this time of the year. High stocks levels serve as a bearish catalyst for natural gas markets.

Natural gas markets remained under pressure after the release of the EIA report, although prices are trying to move away from session lows.

The natural gas storage build exceeded analyst estimates, but it remains to be seen whether the report will serve as an additional bearish catalyst for the market.

Prices have been moving lower in recent trading sessions, so a disappointing report may have been priced in by the market.

Weather forecasts are uninspiring as mild weather is expected to reduce demand in the upcoming days.

From the technical point of view, natural gas is trying to settle below the support level at $2.25 – $2.30. In case this attempt is successful, natural gas will gain additional downside momentum and move towards the next support, which is located in the $2.00 – $2.05 range.

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