Meanwhile, Baker Hughes reported that the number of rigs drilling for natural gas in the U.S. fell by one to 221 last week.
Natural Gas Rig Count
Bottom Line: The latest inventory data from the EIA were neutral, as the inventory surplus against the five-year average increased from 36 to 41 bcf and the inventory surplus against a year-ago decreased from 738 to 714 bcf.
Despite coming in at the lower end of analyst estimates, natural gas didn't react much to today's inventory build. That could be because forward weather forecasts are calling for moderating temperatures, particularly in the important South and Northeast regions.
Without the aid of persistently hotter-than-normal temperatures, it will be a struggle for natural gas prices. Indeed, last week's weather was 40 percent warmer than normal (62 cooling degree days versus the typical 44 cooling degree days), yet the injection still came in above the five-year average.
That's not surprising, of course. After all, just two weeks ago, the EIA reported the largest weekly injection of the decade, clear evidence there is an abundance of supply out there.
If the latest weather forecasts hold, look for natural gas to make a push to the lower end of the trading range near $2.50/mmbtu.