HawkInsight

  • Contact Us
  • App
  • English

Natural gas prices fall as EIA reports stock increase misses expectations

The EIA report shows that natural gas inventories increased by 7.4 billion cubic feet compared to last week, slightly lower than analysts' expected increase of 7.5 billion cubic feet.

Key points:

  • Working gas in storage increased by 74 Bcf from the previous week.
  • Inventories are 573 Bcf above the five-year average for this time of the year.
  • Natural gas prices are moving lower as traders react to the EIA report.

On June 13th, the US Energy Information Agency (EIA) released its natural gas inventory report for the past week. The report shows that compared to last week, natural gas inventories increased by 7.4 billion cubic feet, slightly lower than analysts' expected increase of 7.5 billion cubic feet. Last week, natural gas inventories increased by 9.8 billion cubic feet, so today's report indicates that natural gas demand is on the rise.

At present, inventory levels are 36.4 billion cubic feet higher than the same period last year, and 57.3 billion cubic feet higher than the five-year average of the same period. High storage levels are a major issue facing various aspects of natural gas.

Natural gas prices fell after traders responded to the EIA report. Although the report largely meets analyst expectations, the market seems to be hoping to see a lower increase in inventory as hot weather persists.

Due to sustained high temperatures throughout the United States, the current demand for natural gas remains high. The next 15 days are expected to continue with high temperatures.

From a technical analysis perspective, multiple natural gas companies continue to profit after the recent rise. The recent significant resistance of natural gas is in the range of $3.02 to $3.09. If it breaks through $3.09, natural gas will move towards the next resistance level of $3.28 to $3.32.

Disclaimer: The views in this article are from the original Creator and do not represent the views or position of Hawk Insight. The content of the article is for reference, communication and learning only, and does not constitute investment advice. If it involves copyright issues, please contact us for deletion.