A -190 Bcf EIA Natural Gas Storage Draw Exceeds Analyst Predictions

Prices for natural gas increase as markets watch bullish trends, storage levels decline, and cold weather increases demand.

The EIA published their Weekly Natural Gas Storage Report on December 12, 2024. In contrast to the analyst's prediction of -170 Bcf, the data showed that working gas in storage decreased by -190 Bcf from the previous week. The previous week saw a -30 Bcf decrease in the amount of working gas in storage.

Stocks are currently 165 Bcf above the five-year average for this time of year and 67 Bcf higher than they were a year ago.

As traders responded to the story, natural gas prices increased. Natural gas demand was more than anticipated, and working gas reserves fell by -190 Bcf. The markets for natural gas are expected to rise as storage levels decline.

The main factor that increased demand for natural gas was cold weather, so traders will continue to pay close attention to weather predictions. Given the strong demand for natural gas at the moment and the bullish outlook for the near future, the natural gas markets may receive more assistance.

Technically speaking, natural gas is attempting to settle above the $3.40 level after settling above the prior resistance at $3.20–$3.25. Natural gas will pick up further upward momentum and advance into the next resistance level, which is between $3.55 and $3.60, if this attempt is successful. The RSI is still in the moderate range, and if the proper triggers materialize, there is still plenty of opportunity to increase momentum.