EIA Natural Gas Storage Draw Of -40 Bcf Misses Expectations

On January 8, 2025, EIA released its Weekly Natural Gas Storage Report. The report indicated that working gas in storage declined by -40 Bcf from the previous week, compared to analyst consensus of -51 Bcf.

At current levels, stocks are 3 Bcf less than last year and 207 Bcf above the five-year average for this time of the year.

Natural gas prices moved lower as traders reacted to the report. From the technical point of view, natural gas continues its attempts to settle back above the $3.60 level.

Today, traders also had a chance to take a look at the EIA Weekly Petroleum Status Report. The report showed that crude inventories declined by 1 million barrels from the previous week, compared to analyst forecast of -0.6 million barrels.

Gasoline inventories increased by 6.3 million barrels, while analysts expected that they would grow by 1.5 million barrels. Distillate fuel inventories grew by 6.1 million barrels from the previous week.

Strategic Petroleum Reserve increased from 393.6 million barrels to 393.8 million barrels as U.S. continued to buy oil for strategic reserves.

Domestic production decreased from 13.573 million bpd to 13.563 million bpd. High domestic production levels serve as a bearish catalyst for oil markets.

WTI oil pulled back below the $73.50 level as traders focused on rising gasoline inventories. Brent oil declined towards the $76.00 level. From a big picture point of view, oil traders continue to take profits after the recent rally.

For a look at all of today’s economic events, check out our economic calendar.