Key facts
- July Natural Gas futures reached multi-month highs.
- EIA reported a 95 billion cubic foot weekly storage build for the week ending May 29.
- This build was lower than the consensus estimate of 102 billion cubic feet.
- Total working gas in storage remains above the five-year average.
- Short-term weather forecasts indicate moderate U.S. demand for the coming week.
July Natural Gas futures experienced a significant rally, reaching their highest levels since mid-March. This surge was primarily driven by the Energy Information Administration's (EIA) weekly storage report, which indicated a build of 95 billion cubic feet for the week ending May 29. This figure fell short of the consensus expectation of 102 billion cubic feet. Despite this lower-than-expected build, total working gas in storage remains above the five-year average and is largely unchanged compared to year-ago levels. Regional storage data highlighted the Mountain and Pacific regions as leading in percentage terms. Looking ahead, short-term weather forecasts suggest moderate demand across the United States over the next week, offering a slight positive influence on prices, even with warmer temperatures anticipated in the Southwest.