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EIA Natural Gas Storage Build Of +50 Bcf Misses Estimates

By:
Vladimir Zernov
Updated: Apr 18, 2024, 16:57 GMT+00:00

Key Points:

  • EIA reports a build of +50 Bcf vs +54 Bcf estimate.
  • Stocks remain well above the five-year average for this time of the year due to warm winter.
  • Natural gas prices are trying to settle above the $1.75 level.
Natural Gas, WTI Oil, Brent Oil Forecasts

In this article:

On April 18, 2024, EIA released its Weekly Natural Gas Storage Report. The report indicated that working gas in storage increased by 50 Bcf from the previous week.

Analysts expected that working gas in storage would increase by 54 Bcf, so the report was somewhat bullish.

At current levels, stocks are 424 Bcf higher than last year at this time and 622 Bcf above the five-year average of 1,711 Bcf.

The current demand for natural gas is moderate. Production has declined by about 10% in 2024, but production trends did not provide sufficient support to natural gas prices due to warm winter.

Natural gas  continued its attempts to settle above the $1.75 level as traders reacted to the EIA report. From the technical point of view, natural gas received strong support near the key $1.60 – $1.65 level and is trying to gain upside momentum, supported by the better-than-expected data from the EIA.

It remains to be seen whether natural gas will be able to gain sustainable momentum as traders are worried about weak demand. At this point, it looks that natural gas will need strong positive catalysts to get out of the current trading range between the support at $1.60 – $1.65 and the resistance at $1.95 – $2.00.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.

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