EIA Reports Surprising 56 Bcf Natural Gas Storage Build: What It Means for Prices and Demand
EIA Reports Natural Gas Storage Build of 56 Bcf, Surpassing Estimates and Applying Bearish Pressure on Prices
August 14, 2025 – The U.S. Energy Information Administration (EIA) has released its latest Weekly Natural Gas Storage Report. The report shows a build of 56 billion cubic feet (Bcf). This figure beats analyst forecasts of 53 Bcf. Last week, the build was only 7 Bcf.
Right now, natural gas stocks sit 196 Bcf above the five-year average for this time of year. This gap shows that supplies are high. Stocks remain 79 Bcf below last year, which shows some seasonal change even when supply looks ample.
Market Reaction and Price Outlook
The unexpected storage increase brings a bearish look to the market. After the report, natural gas futures fell. Traders see the high build as a sign of abundant supply amid steady production.
Vladimir Zernov, an independent trader with 18 years of market experience, said, "Our view is that this large storage increase will keep prices lower in the near term. Even if weather forecasts point to strong demand until the end of the week, prices have not gained strong support because many in the market watch high production levels closely."
From a technical view, natural gas prices try to hold steady above a support zone between $2.70 and $2.75 per million British thermal units (MMBtu). If prices fall below $2.70, traders will look to support near $2.50 to $2.55. The Relative Strength Index (RSI) nears oversold levels. New market signals could bring some price movement.
Weather and Demand Forecasts
Experts expect high natural gas demand in the coming days, driven by weather needs. The current surplus in inventory and steady production keep downward pressure on prices for now.
Summary of Key Data
- Weekly Storage Build: +56 Bcf (reported) vs. +53 Bcf (expected)
- Previous Week Build: +7 Bcf
- Storage vs. Five-Year Average: +196 Bcf
- Storage vs. Last Year: -79 Bcf
Broader Market Context
Other market updates join this news. There was a recent rise in the Producer Price Index (PPI) and shifts in crude oil inventories. These points add to a complex background that shapes energy markets and investor views.
For more updates on natural gas and other markets, check economic calendars and market forecasts regularly.
About the Author:
Vladimir Zernov is an independent trader with many years of experience in stocks, futures, forex, indices, and commodities. He writes about market trends and both short-term and long-term price moves.
Disclaimer:
This article is for information only. It does not serve as trading advice. Readers should do their own research and speak with financial experts before making any trading decisions.
