EIA Storage Report Could Confirm Natural Gas Surplus
Natural gas futures fell on Thursday as traders watched for the Energy Information Administration's (EIA) weekly storage report, which could confirm a surplus and extend the selloff.
The market expects a 31 Bcf injection, smaller than last week's build but above the five-year average for early August. However, a number near the estimate is unlikely to sway buyers as inventories are already comfortable, and the trend remains bearish.
A moderate storage number could force short sellers to cover their positions temporarily, but it would not address the surplus built up over months. Buyers need repeated tight builds paired with hotter weather and rising feedgas to change the summer picture.
The current heat wave is concentrated in the West and South, which are not the key regions for natural gas demand. The Midwest and Northeast, where population density and air-conditioning load can move power burn quickly, remain cooler than forecasters had predicted.