EIA Natural Gas Storage Build Of +9 Bcf Exceeds Estimates
On March 20, 2025, the EIA (U.S. Energy Information Administration) released a significant update in its Weekly Natural Gas Storage Report, announcing that working gas in storage increased by +9 Bcf compared to the previous week. This figure is notably above the expected +3 Bcf, indicating a stronger than predicted boost in natural gas supplies.
Key Points
- Working gas in storage rose +9 Bcf from last week.
- Current gas levels remain -190 Bcf under the five-year average.
- Natural gas is attempting to gain momentum after report release.
In the previous week, the report had noted a decrease in working gas in storage by -62 Bcf. To put this into perspective, the current stock levels are also -624 Bcf less than last year at this time. Such low levels have been pivotal in supporting natural gas prices over recent months.
Here's what you need to know:
Market Analysis
After the report's release, natural gas prices exhibited a bit of resilience, though they had dipped earlier. The market is now watching closely to see if natural gas can maintain its footing. Weather forecasts hint that demand is expected to surge later this week, which could provide necessary backing for price improvement.
Technical Levels to Watch
From a technical view, natural gas is currently fluctuating between a support level of $4.00 – $4.05 and resistance at $4.25 – $4.30. If it can successfully break and settle above the $4.30 mark, we might see it push towards the next resistance level in the range of $4.60 – $4.65.
Conclusion
This unexpected build suggests a shift in the dynamics of the natural gas market. Investors and traders should stay alert for upcoming weather events that may influence demand and pricing further.
Stay Informed
For more details on today’s economic events and how they might affect natural gas prices, check out our economic calendar.
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Authored by Vladimir Zernov, an experienced trader with over 18 years in financial markets.