EIA Natural Gas Storage Build Of +76 Bcf Misses Analyst Estimates

On October 17, 2024, EIA released its Weekly Natural Gas Storage Report. The report indicated that working gas in storage increased by +76 Bcf from the previous week, compared to analyst consensus of +78 Bcf. In the previous week, working gas in storage increased by +82 Bcf.

At current levels, stocks are 107 Bcf higher than last year and 163 Bcf above the five-year average for this time of the year.

The price of natural gas moved higher as traders reacted to the report. The five-year average build for this time of the year is +89 Bcf. Thus, the actual build was lower than the five-year average build and lower than the analyst consensus, which is bullish for natural gas prices.

Traders will also focus on weather forecasts, which indicate that demand should be high in the next few days. However, longer-term forecast is somewhat bearish as it indicates that weather could be mild, reducing demand for energy.

From the technical point of view, natural gas is trying to rebound after the strong pullback, which was triggered by the impact of Hurricane Milton. Currently, natural gas is trying to settle back above the $2.40 – $2.45 level. In case this attempt is successful, natural gas will move towards the next resistance level, which is located in the $2.60 – $2.65 range.

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