Key Insights
- Working gas in storage declined by just 49 Bcf, missing analyst estimates.
- The five-year average for this time of the year is a draw of -149 Bcf.
- The report highlights the negative impact of weak demand.
On February 15, 2024, EIA released its Weekly Natural Gas Storage Report. The report indicated that working gas in storage declined by 49 Bcf from the previous week.
Analysts expected that working gas in storage would decrease by 67 Bcf, so the report presented another disappointment for natural gas bulls.
At current levels, stocks are 255 Bcf higher than last year at this time and 348 Bcf above the five-year average.
From a big picture point of view, mild weather continues to put pressure on natural gas markets. Demand is low, so EIA draw is lower than normal. The five-year average for this time of the year is -149 Bcf.
Not surprisingly, natural gas pulled back after the release of the EIA report. However, it remains to be seen whether natural gas will be able to develop additional downside momentum.
The recent pullback was strong, and natural gas settled at multi-month lows. Some traders may be willing to bet on a rebound, although weather forecasts remain uninspiring.
For a look at all of today’s economic events, check out our economic calendar.
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