Natural Gas Price Forecast: $2.90 Threshold Holds as Surplus Narrows

The price of natural gas at the Henry Hub is hovering around $2.90 per MMBtu after the Energy Information Administration reported a 30 Bcf injection into storage for the week ended August 28.

This result met expectations, and initially deflated futures, knocking the prompt month off its highest level in nearly eight weeks of $2.94.

The setup into the report was constructive, with futures pushing higher on Wednesday as increasingly bullish September heat forecasts gave traders another reason to test the $3 mark.

However, the 30 Bcf build takes working gas in storage to 3,214 Bcf, which is a surplus of 5.5% above the five-year average and 0.9% below the same week last year.