On August 29, 2024, the Energy Information Administration (EIA) published its Weekly Natural Gas Storage Report. The report showed that working gas in storage increased by 35 billion cubic feet (Bcf) over the past week. This figure fell short of the analyst expectation of a 38 Bcf increase. The previous week also saw a 35 Bcf rise in storage.
Currently, natural gas stocks are 228 Bcf higher than at the same time last year and 361 Bcf above the five-year average for this period.
In response to the report, natural gas prices bounced back from earlier lows as traders reacted. The storage build falling below analyst expectations could offer some support to the natural gas markets.
Demand for natural gas remains strong, with forecasts predicting high usage over the weekend. However, a decline in demand is expected next week, which could pressure prices.
Overall, the natural gas market faces a persistent oversupply issue. Significant positive developments are needed for a sustained upward trend in prices.
From a technical standpoint, natural gas prices have settled above the nearest support level of $2.00–$2.05, which has proven resilient. If prices move above the $2.10 mark, they may advance toward the next resistance level, located in the $2.25–$2.30 range.