Natural Gas Storage Build Exceeds Analyst Estimates
- Working gas in storage grew by 32 Bcf from the previous week.
- Stocks are 484 Bcf higher than last year at this time.
- Natural gas continues its attempts to settle above the resistance at $2.80 – $2.85.
On August 31, EIA released its Weekly Natural Gas Storage Report. The report indicated that working gas in storage increased by 32 Bcf from the previous week, compared to analyst consensus of +25 Bcf.
At current levels, stocks are 484 Bcf higher than last year and 249 Bcf above the five-year average of 2,866 Bcf.
Natural gas has recently gained upside momentum, but it remains to be seen whether this momentum will be sustainable as the storage build exceeded analyst estimates.
Interestingly, natural gas prices settled near the resistance at $2.80 – $2.85 despite the report. Traders will also stay focused on the impact of Hurricane Idalia, which may cut demand for natural gas.
The potential strikes at Australian LNG facilities remain a catalyst to watch. The strikes at Chevron’s LNG complexes are expected to start from September 7. These facilities have more than 5% of global LNG production capacity. It is not clear whether global markets have fully priced in the strike, so it may serve as an additional positive catalyst for natural gas prices.
The current demand for natural gas is moderate, but weather is expected to get warmer next week, which may provide additional support to natural gas markets.
For a look at all of today’s economic events, check out our economic calendar.