The increase in natural gas storage surpasses the predictions of analysts.

• The amount of working gas in storage grew by 32 Bcf from the previous week.
• The current natural gas stocks exceed last year's levels by 484 Bcf.
• Natural gas is attempting to settle above the resistance levels of $2.80 - $2.85.

The Weekly Natural Gas Storage Report, released by the EIA on August 31, revealed that the amount of working gas in storage increased by 32 Bcf compared to the previous week, surpassing the analyst consensus of +25 Bcf.

Currently, natural gas stocks are 484 Bcf higher than last year and 249 Bcf above the five-year average. Despite the storage build exceeding expectations, natural gas prices settled near the resistance level of $2.80 - $2.85.

Traders are also closely monitoring the potential impact of Hurricane Idalia, which could reduce the demand for natural gas. Additionally, the anticipated strikes at Australian LNG facilities, specifically Chevron's LNG complexes starting from September 7, are being closely watched as they account for over 5% of global LNG production capacity.

It remains uncertain whether the market has fully priced in the strikes, so this event might serve as an additional positive catalyst for natural gas prices.

While the current demand for natural gas is moderate, there is an expectation of warmer weather in the coming week, which could provide further support to natural gas markets.