On July 11th, the US Energy Information Administration (EIA) released its weekly natural gas storage report. The report shows that compared to last week, the stored working natural gas has increased by 6.5 billion cubic feet, while analysts' consensus expectation is an increase of 5.6 billion cubic feet.

The current storage level is 28.3 billion cubic feet higher than the same period last year and 50.4 billion cubic feet higher than the average level of 269.5 billion cubic feet over the past five years.

Based on the weather forecast, it can be foreseen that the demand for natural gas will remain strong in the next seven days. However, due to the increase in production and problems with the Freeport liquefied natural gas terminal after Hurricane Berrier made landfall, the hot weather did not provide support for prices.

Natural gas prices continue to be under pressure after the release of the EIA report. In recent weeks, high inventory levels have put enormous pressure on natural gas prices.

For bulls, the hot weather did not provide sufficient support for the market as inventory growth exceeded analysts' expectations.

The issues of high production levels and free port liquefied natural gas terminals have become negative catalysts for the natural gas market.

At present, natural gas requires significant positive catalysts to break the bear market trend. It remains to be seen whether such catalysts will appear in the short term.

Currently, natural gas is attempting to break below the support level of $2.25 to $2.30. If successful, natural gas will move to the next support level, which is in the range of $2.00 to $2.05.