EIA Natural Gas Storage Build Of +82 Bcf Exceeds Analyst Estimates

On October 10, 2024, EIA released its Weekly Natural Gas Storage Report. The report indicated that working gas in storage increased by 82 Bcf from the previous week, compared to analyst consensus of +73 Bcf. In the previous week, working gas in storage increased by +55 Bcf.

At current levels, stocks are 124 Bcf higher than last year and 176 Bcf above the five-year average for this time of the year.

Natural gas prices were swinging between gains and losses as traders reacted to the report. The EIA report exceeded analyst estimates, which is bearish for natural gas markets. However, it should be noted that natural gas prices have suffered a strong pullback in recent days, so it remains to be seen whether the report will serve as an additional bearish catalyst for natural gas markets.

Meanwhile, natural gas traders will stay focused on the impact of Hurricane Milton. According to recent reports, over 3.2 million customers were without power in Florida, which means that demand for natural gas will decline. The key question is whether this scenario has been already priced in by the market.

From the technical point of view, natural gas found support in the $2.60 – $2.65 range. In case natural gas settles below the $2.60 level, it will head towards the next support level, which is located at $2.40 – $2.45.

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