FX Guys

Natural Gas Storage Build Exceeds Analyst Estimates

Key Insights

  • Working gas in storage grew by 32 Bcf from the previous week. 
  • Stocks are 484 Bcf higher than last year at this time. 
  • Natural gas continues its attempts to settle above the resistance at $2.80 – $2.85.

On August 31, EIA released its Weekly Natural Gas Storage Report. The report indicated that working gas in storage increased by 32 Bcf from the previous week, compared to analyst consensus of +25 Bcf.

At current levels, stocks are 484 Bcf higher than last year and 249 Bcf above the five-year average of 2,866 Bcf.

Natural gas  has recently gained upside momentum, but it remains to be seen whether this momentum will be sustainable as the storage build exceeded analyst estimates.

Interestingly, natural gas prices settled near the resistance at…
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