Natural gas markets experienced a brief counter-trend rally today, but this momentum stalled after the release of a bearish EIA (Energy Information Administration) storage report. The report showed a higher-than-expected build of 80 billion cubic feet (Bcf) in U.S. natural gas inventories, which exceeded analyst forecasts. This larger storage increase signals a softer demand outlook and reinforces bearish sentiment in the market .
Despite the rally earlier in the week, traders reacted to the storage data by pulling back, as the larger inventory suggests that supply is more than sufficient to meet current demand. Natural gas prices, which had seen some recovery after previous declines, struggled to maintain upward momentum in the face of this bearish supply data.
In the longer term, natural gas prices are expected to remain volatile, driven by factors like weather forecasts, geopolitical tensions, and shifts in energy consumption. However, for now, the bearish storage report is putting downward pressure on prices .
