EIA Natural Gas Storage Draw Of -261 Bcf Misses Estimates

On February 27, 2025, EIA released its Weekly Natural Gas Storage Report. The report indicated that working gas in storage decreased by -261 Bcf from the previous week, compared to analyst forecast of -265 Bcf. In the previous week, working gas in storage decreased by -196 Bcf.

At current levels, stocks are -561 Bcf less than last year and -238 Bcf below the five-year average for this time of the year.

Natural gas prices moved higher as traders reacted to the EIA report. It looks that traders expected that inventory draw would be smaller.

Traders will also stay focused on weather forecasts. The current demand for natural gas is low, and weather forecasts predict mild weather at the start of March. However, stocks are significantly below levels seen in the last year and also below the five-year average for this time of the year, which may provide additional support to natural gas prices.

From the technical point of view, natural gas is trying to settle back above the support at $4.00 – $4.05 range. In case this attempt is successful, natural gas will move towards the nearest resistance, which is located in the $4.25 – $4.30 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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