EIA Natural Gas Storage Draw Of -321 Bcf Exceeds Expectations

On January 30, 2025, EIA released its Weekly Natural Gas Storage Report. The report indicated that working gas in storage declined by -321 Bcf from the previous week, compared to analyst consensus of -313 Bcf. In the previous week, working gas in storage declined by -223 Bcf.

At current levels, stocks are -144 Bcf less than last year and -111 Bcf below the five-year average for this time of the year.

Natural gas prices moved lower as traders reacted to the EIA report. The report showed a bigger-than-expected inventory draw, but it looks that the market prepared for a stronger report due to the impact of Arctic Blast.

The current demand for natural gas is low, which serves as a bearish catalyst for natural gas markets. Weather forecasts suggest  that traders should prepare for light national demand over the next seven days.

From the technical point of view, natural gas remains stuck below the nearest resistance level at $3.20 – $3.25. In case natural gas pulls back below the $3.10 level, it will move towards the support, which is located in the $2.95 – $3.00 range. RSI is in the moderate territory, so there is plenty of room to gain additional momentum in the near term.

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