On June 6, 2024, EIA released its Weekly Natural Gas Storage Report. The report indicated that working gas in storage increased by 98 Bcf from the previous week, compared to analyst consensus of +89 Bcf. Last week, the working gas in storage grew by 84 Bcf.
At current levels, stocks are 373 Bcf higher than last year and 581 Bcf above the five-year average for this time of the year.
Natural gas prices moved lower as traders reacted to the EIA report. The storage build has significantly exceeded analyst estimates, which is bearish for natural gas markets.
Natural gas traders would also continue to monitor the dynamics of weather forecasts. The current demand for natural gas is high due to hot weather.
Natural Gas Price Forecast
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See all Natural Gas forecastsHowever, weather forecasts imply that natural gas demand would decline starting from June 7, before rebounding to high levels in the middle of the month. The potential reduction of demand in the upcoming days may serve as an additional bearish catalyst for natural gas markets.
From the technical point of view, natural gas continues its attempts to settle above the strong resistance level in the $2.80 – $2.85 range. In case natural gas moves above $2.85, it will head towards the next resistance, which is located near multi-month highs at $3.02 – $3.09.
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