EIA Natural Gas Storage Draw Of -174 Bcf Exceeds Analyst Expectations

On February 6, 2025, EIA released its Weekly Natural Gas Storage Report. The report indicated that working gas in storage declined by -174 Bcf from the previous week, compared to analyst forecast of -168 Bcf. In the previous week, working gas in storage declined by -321 Bcf.

At current levels, stocks are -208 Bcf less than last year and -111 Bcf below the five-year average for this time of the year.

Natural gas prices have started to move higher as traders reacted to the report. The storage draw exceeded analyst estimates, which may provide additional support to natural gas markets. However, some traders used the report as an opportunity to take some profits off the table, pushing the prices lower.

The current demand for natural gas is low. However, weather forecasts indicate that demand could increase next week, which may also serve as a positive catalyst for natural gas prices.

From the technical point of view, natural gas managed to settle above the resistance at $3.20 – $3.25 and is trying to gain additional upside momentum. In case this attempt is successful, natural gas will head towards the next resistance, which is located in the $3.55 – $3.60 range. RSI is in the moderate territory, and there is plenty of room to gain momentum in case the right catalysts emerge.

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