Natural gas prices rebounded on Thursday, as the EIA revised a 2-month period by 8 Bcf, which was offset by a larger than expected build in inventories. The weather is forecast to be warmer than normal over the next 8-14 days which should keep prices buoyed. Prices rebounded near support at the 10-day moving average at 2.897, and is poised to test a downward sloping trend line near 2.97. Momentum is neutral as the MACD histogram prints in the black with a flat trajectory which points to consolidation.
Inventories Rose More than Expected
The EIA reported that working gas in storage was 3,082 Bcf as of Friday, August 11, 2017. This represents a net increase of 53 Bcf from the previous week, compared to expectations of a 47 Bcf rise. Stocks were 254 Bcf less than last year at this time and 55 Bcf above the five-year average of 3,027 Bcf. At 3,082 Bcf, total working gas is within the five-year historical range.