US natural gas storage rose by 61 billion cubic feet last week, a hair above the 60 Bcf analysts expected. The build landed close to forecasts, and futures fell 5.26%.
The Energy Information Administration reported that natural gas storage rose by 61 billion cubic feet over the past week, landing just above the analyst forecast of a 60 Bcf build.
Futures fall despite the in-line build
Natural gas futures dropped to 3.043, down 0.169 or 5.26%. The decline came even though the storage figure barely differed from the consensus.
The week’s build also marked a slowdown. It came in well below the prior week’s 87 Bcf increase, pointing to a shift in the pace at which gas is flowing into inventory.
Why the storage number moves the market
Traders read the weekly EIA figure as a proxy for supply and demand balance. According to Investing.com, a build that surpasses expectations typically signals weaker demand and can be bearish for prices, while a build that falls short may imply stronger demand and support them.
This report did neither, arriving almost exactly on forecast. That leaves traders monitoring inventory dynamics for insight into future pricing and demand, keeping natural gas in focus. Canada’s energy sector, given the fuel’s importance to the Canadian economy, tracks the same figures closely.
Source: Investing.com
Trading involves risk.
Risk Disclaimer
