On February 8, 2024, the U.S. Energy Information Administration released its weekly natural gas storage report.。The report showed that working natural gas in inventories fell by 7.5 billion cubic feet compared with last week, slightly lower than the 7.6 billion cubic feet expected by analysts.。

Based on data for the same period in the calendar year, the average decline in natural gas inventories during this period was 19.3 billion cubic feet。However, warmer weather compared to previous years led to smaller inventory reductions。

At current levels, inventories are 18.7 billion cubic feet higher than a year earlier and 24.8 billion cubic feet higher than the five-year average for the same period.。

Weather forecast still not encouraging, traders continue to focus on weak demand。It remains to be seen whether bullish sentiment in natural gas can find positives in the short term。

Gas prices retreated after report highlights weak demand。Currently, near-month contract prices remain stuck below $2。

Looking at the futures curve, traders do not expect a significant improvement in the supply and demand balance in the coming months。

Production remains high, putting pressure on gas prices。In addition, the shutdown of LNG export facilities has become another negative factor in the natural gas market.。

From a macro perspective, the trend remains bearish。Natural gas needs a major boost to change current trends。