On June 6th, the US Energy Information Agency (EIA) released a weekly natural gas inventory report. The report shows that working natural gas inventories increased by 9.8 billion cubic feet (Bcfs) compared to the previous week, exceeding analysts' expectations of 8.9 billion cubic feet. By comparison, last week's inventory increased to 8.4 billion cubic feet.

The current inventory level is 37.3 billion cubic feet higher than last year and 58.1 billion cubic feet higher than the five-year average level.

Affected by the EIA report, natural gas prices have fallen. The significant increase in inventory exceeded analyst expectations, which poses a negative impact on the natural gas market.

In addition, natural gas traders will continue to monitor the dynamics of weather forecasts.

Currently, due to hot weather, there is a high demand for natural gas. However, weather forecasts indicate that natural gas demand will decline from June 7th and then rebound to high levels again in mid month. In the coming days, demand may decrease, which may become another bearish factor for the natural gas market.

From a technical perspective, natural gas prices continue to attempt to break through the strong resistance range of $2.80 to $2.85. If natural gas prices break through $2.85, they will move towards a multi month high of $3.02 to $3.09 in the next resistance level.