NATGAS erases daily gains as inventories increase more than expected

Working gas in storage change came at 57 bcf which was more than expected 51 bcf and much more than 33 bcf increase last week. Working gas in storage was 3,205 Bcf as of Friday, September 8, 2023, according to EIA estimates. Stocks were 445 Bcf higher than last year at this time and 203 Bcf above the five-year average of 3,002 Bcf. At 3,205 Bcf, the total working gas is within the five-year historical range. Of course, looking at the stocks chart we can notice that oversupply is shrinking which could indicate a higher than usual demand and lower production in recent weeks. Despite this trend, the price is declining today. The key resistance is close to 2.8 USD/MMBTU and the key support zone is still between 2.45 and 2.5. 

We can notice that the current inventory level is closing to a 5-year average which may suggest that the price rally may not be over this season. Source: EIA

Source: xStation5