Though it’s holding for now, a break of the key $2.75/mmbtu support in natural gas would portend a much bigger correction in prices.
Natural gas fell sharply after the Energy Information Administration reported that operators injected 47 billion cubic feet into storage last week, above the 38 bcf that most analysts were expecting.
However, the build in inventories was below the year-ago injection of 73 bcf and the five-year average injection of 53 bcf.
Thus, the inventory surplus continued its decline. At 3308 bcf, storage is 402 bcf above the year-ago level and 367 bcf above the five-year average (calculated using a slightly different methodology than the EIA).