On March 27, 2025, EIA released its Weekly Natural Gas Storage Report. The report indicated that working gas in storage increased by +37 Bcf from the previous week, compared to analyst forecast of +25 Bcf. In the previous week, working gas in storage increased by +9 Bcf.
At current levels, stocks are -557 Bcf less than last year and -122 Bcf below the five-year average for this time of the year.
Natural gas prices are losing some ground as traders react to the EIA report. It should be noted that the report was rather bearish as natural gas storage build exceeded analyst estimates. However, stocks remain well below last year’s levels, which may provide some support to the market.
Natural gas traders switched from April 2025 contract to May 2025 contract, which may increase volatility in the near term. Weather forecasts indicate that natural gas demand will stay low in the upcoming days, so it remains to be seen whether natural gas bulls will find sufficient positive catalysts to push prices higher.
From the technical point of view, natural gas has recently made an attempt to settle below the support at $3.70 – $3.75. A successful test of this level will open the way to the test of the next support level at $3.35 – $3.40.
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