Natural Gas Storage Surplus Surprises Market, Eyes on Weather-Driven Price Moves

Market Caught Off Guard by Excess Natural Gas Stockpiles; Focus Shifts to Price Swings Driven by Weather Patterns

The Energy Information Administration in the United States announced that natural gas storage increased by 29 billion feet in the week ending March 28th of 2025, exceeding predictions made by experts who foresaw a rise of 27 Bcf, in contrast to the week’s larger build of 37 Bcf.

Despite the injection surpassing expectations in the quantity of gas reserves added to storage facilities this season, the overall inventory of working gas remains 80 Bcf lower than the average over the five years. A notable 491 Bcf less than levels recorded last year maintains a positive outlook on market conditions, giving traders reason to remain vigilant for any changes in demand due to weather patterns.

Following the data release and noticing a pullback in prices from highs indicates a sense of uncertainty in the market dynamics. However, it is worth noting that the forecasts are predicting temperatures commencing from April 7th which could potentially drive up heating demand and provide a boost to the market.

Technically speaking, the price of gas is approaching a level of resistance ranging from $4.25 to $4.30. If it surpasses this level, it could potentially reach the range of approximately $4.55 to $4.60. At present, the Relative Strength Index (RSI) remains within a range, indicating that there is space for the price to increase further if new driving factors come into play.

Make sure to keep an eye on the storage updates and weather forecasts as they can strongly influence short-term trends in the natural gas market dynamics. For a view that integrates market analysis with trading cues tailored for both novice and seasoned traders alike markets, for you provides a range of tools designed to assist you in staying proactive and agile market conditions can change rapidly.