On July 18th, the US Energy Information Administration (EIA) released its weekly natural gas storage report. The report shows that compared to last week, available natural gas storage has increased by 1 billion cubic feet , while analysts expect an increase of 2.8 billion cubic feet.

At present, natural gas inventory levels are 25 billion cubic feet higher than the same period last year and 46.5 billion cubic feet higher than the five-year average level of 274.4 billion cubic feet. In recent weeks, high inventory levels have become the main pessimistic factor in the natural gas market.

After the report was released, natural gas prices have increased. Since early June, the natural gas market has been under pressure due to high inventory levels and the shutdown of the Freeport liquefied natural gas project.

Although the hot weather has driven strong demand, it has not effectively supported natural gas prices.

It is still unclear whether the current rebound can continue, as weather forecasts indicate that demand for natural gas will remain moderate in the coming days.

From a technical perspective, natural gas prices are supported in the range of $2.00 to $2.05, and some traders believe that the natural gas market is oversold. If natural gas prices can stabilize above $2.10, it will be close to the nearest resistance range of $2.25 to $2.30.