Natural Gas Prices Slide After EIA Report
- Working gas in storage fell by 84 Bcf.
- Inventory levels remain above 5-year average.
- Natural gas pulled back towards the $2.55 level after the release of the EIA data.
Working Gas In Storage Declines By 84 Bcf
On March 9, EIA released Weekly Natural Gas Storage Report, which indicated that working gas in storage declined by 84 Bcf from the previous week. Analysts expected that natural gas stocks would decline by 80 Bcf.
While the report exceeded analyst estimates, traders should note that the five-year average for this time of the year is a draw of 101 Bcf. At current levels, stocks are 493 Bcf higher than last year and 358 Bcf higher than the five-year average of 1,671 Bcf.
There are no material changes in weather forecasts, so natural gas traders will remain focused on the EIA data during today’s trading session.
Natural Gas Price Falls After EIA Report
Natural gas pulled back towards the $2.55 level after the release of EIA data. While the report exceeded analyst estimates, bulls wanted to see a bigger draw.
The current inventory levels exceed the five-year average, which is bearish for natural gas markets. The restart of Freeport LNG provided support to natural gas markets and pushed prices away from multi-month lows, but it remains to be seen whether it will be sufficient for sustainable upside momentum.
Traders will react to the changes in weather forecasts in the upcoming trading sessions. The current natural gas demand is moderate, and bulls will need additional positive catalysts to push prices higher.
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