On September 12, the U.S. Energy Information Administration (EIA) released its weekly natural gas inventory report. The report showed that working natural gas inventories increased by 40 billion cubic feet (Bcf) from the previous week, below analysts' expectations of 49 Bcf.

Current inventory levels are 198 billion cubic feet (Bcf) above last year and 296 Bcf above the five-year average.

Natural gas prices rose after traders reacted to the EIA report. This could provide additional support to prices in the short term as natural gas inventory growth failed to meet analysts' expectations.

Traders will also be looking at the potential impact of Hurricane Francine. The hurricane has already forced production shutdowns in the U.S. Gulf of Mexico region. At the same time, the hurricane will bring cooling weather and could lead to power outages, which could reduce demand for natural gas. In this case, traders are forecasting the eventual impact on the supply and demand balance.

From a technical perspective, natural gas prices continue to try to stabilize above the $2.25 to $2.30 resistance level. The Relative Strength Index (RSI) is in the mid-range, so there is still plenty of upside if the right catalysts emerge. If natural gas prices succeed in stabilizing above $2.30, it will move towards the next resistance level of $2.55 to $2.60.