On October 10, the U.S. Energy Information Administration (EIA) released its latest weekly natural gas inventory report. The data showed that U.S. natural gas inventories increased by 82 billion cubic feet (Bcf) as of last week, far exceeding market expectations of 73 Bcf. The previous week, natural gas inventory growth was 5.5 Bcf.

Currently, U.S. natural gas inventory levels are 124 Bcf higher than a year ago and 176 Bcf higher than the average for the same period over the past five years.

Natural gas prices fluctuated between gains and losses following the release of the report.The EIA reported a larger-than-expected increase in inventories, which was bearish for the natural gas market.

However, it is important to note that natural gas prices have already experienced a relatively large pullback in the recent past, so it is uncertain whether this report will be a further depressing factor for natural gas prices.

Meanwhile, natural gas market participants will continue to monitor the impact of Hurricane Milton. The latest data shows that more than 3.2 million customers have lost power in Florida, implying that demand for natural gas will be reduced. The key question is whether the market has factored this into pricing considerations.

From a technical perspective, natural gas is finding support in the $2.60 to $2.65 range. If natural gas prices fall below the $2.60 mark, they could fall further towards the next support range of $2.40 to $2.45.