On May 16, 2024, the U.S. Energy Information Administration (EIA) released its weekly natural gas storage report. The report indicated that available natural gas in storage increased by 7 billion cubic feet compared to the previous week, slightly below analysts' consensus expectation of a +7.6 billion cubic feet increase. Current levels of storage are calculated to be 42.1 billion cubic feet higher than the same period last year and 62 billion cubic feet above the five-year average.

Following the release of the EIA report, natural gas prices experienced a slight increase. The storage buildup falling short of analysts' expectations could potentially serve as another bullish factor in the market. Natural gas prices have been on the rise since early May.

Substantial oversupply remains a significant driving factor for natural gas, as storage levels exceed those of the same period last year and the five-year average. However, traders are betting on rising liquefied natural gas (LNG) exports, previously announced production cuts, and the possibility of a hot summer boosting demand for natural gas, pushing prices towards new highs.

From a technical perspective, natural gas is attempting to break through the resistance range of $2.45 to $2.50 per thousand cubic feet. If successful, natural gas could advance towards the next resistance level, which lies in the range of $2.80 to $2.85 per thousand cubic feet. The Relative Strength Index (RSI) remains in the moderate zone, indicating sufficient upside momentum in the short term.