EIA’s Disappointing Natural Gas Storage Report: What It Means for Prices and Traders
EIA Natural Gas Storage Build Misses Estimates, Influencing Market Dynamics
The U.S. Energy Information Administration put out its latest Weekly Natural Gas Storage Report on August 21, 2025. The report shows a build of +13 billion cubic feet in working gas. Analysts had expected a build of +22 billion cubic feet. Last week, the build reached +56 billion cubic feet.
Current Inventory Levels
Natural gas stocks now sit +174 billion cubic feet above the average of the past five years. Stock levels are -95 billion cubic feet lower compared to last year. The numbers show a shift in supply trends.
Market Reaction and Outlook
After the report came out, natural gas prices moved higher. Traders saw the smaller build as a sign that the storage market might change. The market now sees a chance for short-covering.
Prices have been under pressure since mid-July. Even if supply stays high, the recent data seem to give a small lift. Prices try to settle above the $2.80 mark. If they clear that point, they may rise toward the $3.00 to $3.05 range. The current strength index shows room for short-term gains.
Demand and Weather Factors
Weather forecasts now predict cooler days ahead. Temperatures should drop soon. This drop may trim natural gas use in the near future. Even though current use stays high, fading demand may hold back price gains.
Summary
- Storage Build: +13 Bcf (short of the forecasted +22 Bcf)
- Inventory Levels: +174 Bcf above the five-year average; -95 Bcf below last year
- Price Reaction: Natural gas prices rose after the report; they now try to break the $2.80 mark
- Outlook: Prices may rise toward $3.00-$3.05 if momentum holds, but cooler weather might slow gains
Investors and traders watch new reports and weather changes carefully. These factors shape the natural gas market in the coming weeks.
About the Author: Vladimir Zernov is an independent trader with 18 years of experience in stocks, futures, forex, indices, and commodities. He studies both long-term trends and short-term market changes.
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Disclaimer: The article provides information only and is not trading advice. Conditions in the market can shift fast. Investors should do their own research and talk with a financial advisor before trading.
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