On February 27, 2025, the U.S. Energy Information Administration (EIA) published its Weekly Natural Gas Storage Report. The report showed a decline of 261 billion cubic feet (Bcf) in working gas storage from the previous week, slightly missing analysts’ expectations of a 265 Bcf draw. The previous week saw a smaller decline of 196 Bcf.
Currently, natural gas stocks are 561 Bcf lower than the same time last year and 238 Bcf below the five-year average. Following the release of the report, natural gas prices rose as traders reacted to the smaller-than-expected inventory draw.
Traders are also keeping an eye on weather forecasts. While current natural gas demand is low, forecasts for early March predict mild weather. Despite this, the significant shortfall in stocks compared to last year and the five-year average may offer support for higher natural gas prices.
From a technical perspective, natural gas is attempting to hold above the $4.00–$4.05 support range. If successful, prices could rise toward the next resistance level, between $4.25 and $4.30. The Relative Strength Index (RSI) is in a neutral range, leaving room for further momentum if the right market catalysts emerge.
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