Natural Gas News: EIA Reports 56 Bcf Injection, Reinforcing Bearish Pressure on Futures

Natural Gas Futures Slip as EIA Reports Larger-Than-Expected Storage Build

U.S. natural gas futures edged lower Thursday after the EIA reported a larger-than-expected storage injection of 56 Bcf for the week ending August 8. Prices are still consolidating just below the $2.885 resistance level, with the bearish injection print reinforcing downside pressure as traders weigh the impact of surging production, softening weather demand, and strong supply metrics.

Can Natural Gas Hold After EIA Storage Build Tops Forecast?

The 56 Bcf injection exceeded the consensus estimate of 54 Bcf and far outpaced the five-year average build of 33 Bcf. Total working gas now stands at 3,186 Bcf, 6.6% above the five-year seasonal average and within the historical range. This build confirms that U.S. storage remains well-supplied despite the recent heat-driven demand and tight balances from last week’s bullish +7 Bcf report.

The data undercuts any short-term bullish thesis and confirms a supply-heavy environment. Traders now expect the recent price bounce from nine-month lows to lose steam, unless future injections begin trending below normal again.

Weather and Demand Still Supportive—but Not Enough

NatGasWeather forecasts elevated national demand through August 19, with temperatures in the upper 80s to 100s across most of the U.S., particularly the Southwest and Texas. However, the market is increasingly focused on cooler forecasts for the eastern U.S. between August 18–27, which could lower power burn and trim demand support.

BNEF reported Lower 48 demand at 81.8 Bcf/day on Wednesday, up 5.5% y/y. LNG exports were steady at 15.9 Bcf/day but slightly lower week-on-week. While high temps are helping maintain solid baseline demand, electricity output dipped 1.9% y/y last week, showing signs of weakening burn rates despite the heat.

Are Chart Signals Pointing to a Breakdown?

Technically, natural gas remains trapped under $2.885, now confirmed as resistance. A close above could trigger short-covering toward $3.148, but sellers are likely to return near the 50-day moving average at $3.500. On the downside, $2.764 is a soft floor. If that breaks, all eyes shift to the long-term support zone near $2.498—a key level that could be retested if bearish momentum accelerates.

Market Forecast: Bearish Bias Reinforced by EIA Report

With today’s EIA report confirming stronger-than-expected storage growth and production still running near record highs, the outlook for natural gas futures remains bearish. Unless high heat lingers longer than expected or storage surprises to the low side in coming weeks, the path of least resistance remains lower, with $2.498 a likely near-term target.

More Information in our Economic Calendar.