Natural gas prices moved away from session highs as traders reacted to the report. The report indicated that cold weather boosted demand, and natural gas storage draw has mostly met analyst estimates.
As natural gas prices rallied in recent trading sessions, some traders bet on a larger inventory draw, so they may have been disappointed by the EIA data. Overall, the report was rather bullish as natural gas stocks declined well below the levels seen in the previous year. However, it should be noted that stocks stay above the five-year average for this time of the year.
Traders will also stay focused on weather forecasts as the market prepares for the Arctic Blast, which would boost demand for energy next week.
From the technical point of view, natural gas needs to settle above the $4.15 level to gain additional upside momentum in the near term. A move above $4.15 will push natural gas towards the…
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