Natural Gas News: EIA Report Shows Small Storage Build, Prices Hold Above $2.725

Natural Gas Futures Hold Support After Smaller-Than-Expected Storage Build

U.S. natural gas futures ticked higher on Thursday following a lighter-than-expected storage build, as traders continued to defend the $2.725 support level for a third straight session. A break below this price could accelerate downside momentum toward a multi-month low of $2.574.

At 15:20 GMT, Natural Gas is trading $2.822, up $0.070 or +2.54%.

Will the EIA Storage Miss Fuel Further Upside?

The Energy Information Administration (EIA) reported a weekly storage build of just +13 Bcf for the week ending August 15, falling short of consensus estimates ranging from +18 to +23 Bcf. This compares with a five-year average build of +35 Bcf, highlighting the impact of hotter-than-normal temperatures across much of the U.S., especially the West and Central regions.

The below-average build suggests stronger-than-expected power sector demand, driven by elevated cooling loads. The South Central region notably posted a net withdrawal of -13 Bcf, entirely from salt facilities, indicating tightening supply conditions in a key demand hub.

Can Bulls Break Through Key Resistance Levels?

Natural gas is currently testing the lower end of a narrow range, with $2.725 serving as critical near-term support. On the upside, traders are eyeing $2.966 as the next level to beat. A break above this swing top would flip the minor trend to the upside and target $3.148 next. Beyond that, the 50-day moving average at $3.400 remains a significant technical hurdle.

If bulls can maintain momentum past $2.966, short-covering and fresh speculative buying could accelerate, especially with the market reacting to increasingly weather-sensitive demand. However, a failure to hold $2.725 may trigger technical selling down to $2.574, the next area of structural support.

Weather, Demand Trends May Cap Gains

While strong heat continues to support demand through the weekend—especially in the West, South, and Central U.S.—cooler systems moving into the Midwest, Northeast, and Ohio Valley will suppress consumption into late next week. National demand is expected to drop from moderate-high to low over the next five days, limiting upside price potential unless additional supply-side surprises emerge.

Market Forecast: Cautiously Bullish With Key Resistance in Focus

With the EIA storage report falling well below average expectations and weather still favoring short-term demand, the near-term bias leans slightly bullish. However, gains will be limited unless futures can push decisively above $2.966. If prices hold above $2.725 while weather remains supportive, a retest of $3.148 is plausible. A break below support would shift momentum sharply bearish.

More Information in our Economic Calendar.