EIA storage data matches analyst estimates.

The report's findings did not significantly influence the dynamics of natural gas prices. As a result, traders will continue to pay close attention to any updates or shifts in weather forecasts.

Key Insights

• The amount of working gas in storage increased by 35 Bcf from the previous week.
• Traders are paying significant attention to the developments surrounding a possible LNG strike in Australia.
• The report's findings, which were in line with analyst predictions, did not result in a notable impact on the price of natural gas.

On August 17, the Energy Information Administration (EIA) published the Weekly Natural Gas Storage report, indicating that there was a 35 Bcf increase in working gas in storage compared to the previous week.

This growth closely aligned with analysts' expectations, who predicted a 34 Bcf increase. Currently, natural gas stocks are 549 Bcf higher compared to the same period last year and 299 Bcf above the five-year average of 2,766 Bcf.

Despite the high demand for natural gas at present, the forecast for the end of August suggests cooler weather, which could have a slightly bearish impact on natural gas prices.

In response to the EIA report, natural gas prices did not display a significant reaction, which was not unexpected as the report mostly met analyst estimates. Technically, natural gas is attempting to recover from the recent sell-off triggered by bearish changes in weather forecasts.

Traders are also closely watching developments in the global liquefied natural gas (LNG) markets. The potential risks associated with Australian LNG exports, which might be affected by strike shutdowns, are garnering attention and providing psychological support to U.S. natural gas markets.

Following the release of the EIA data, the price of natural gas hovers close to the crucial $2.65 level. If natural gas manages to settle above this level, it is likely to gain additional upside momentum and move toward the resistance in the $2.80 - $2.85 range.