US inventories of natural gas grew by 77 billion cubic feet last week, short of the 80 billion forecast. The build still topped the previous week's gain. The smaller-than-expected rise might support prices in the short term.
The Energy Information Administration (EIA) reported a 77 billion cubic foot increase in natural gas inventories for the past week. The forecast called for a rise of 80 billion cubic feet.
Storage build outpaces the prior week
The latest gain still exceeds the previous week's increase of 67 billion cubic feet. The data points to a continued upward trend in storage, though at a slightly slower pace than analysts projected.
What a smaller build means for prices
Storage additions below expectations typically signal stronger demand, which can be bullish for natural gas prices. Higher-than-expected builds often suggest weaker demand and downward pressure on prices. In this case, the smaller-than-anticipated increase might support prices in the short term.
The report's reach extends beyond the US. The Canadian dollar, closely tied to the energy sector, often fluctuates in response to changes in US natural gas storage levels, so currency traders may weigh the figures too.
Source: Investing.com
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