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Storage Build Misses Expectations but Doesn’t Inspire Bulls
The latest EIA storage data reported a 57 Bcf build for the week ending April 4, lifting total inventories to 1,830 Bcf. While this figure came in below the five-year average build of 1,870 Bcf, it still failed to spark a rally. Stocks remain 450 Bcf below year-ago levels, but only 40 Bcf under the five-year norm—well within the historical range. Traders appear to be discounting the modest undersupply, focusing instead on muted demand signals and the lack of bullish momentum.
Weather Trends Offer Limited Upside for Demand
Weather forecasts show a brief bump in heating demand as a late-season cold front moves through the Midwest and East early in the week. However, high pressure across much of the country will limit sustained consumption, with temperatures rebounding into the 60s-80s for the southern and western U.S. Following Monday’s low demand, the rest of the workweek is expected to bring only moderate consumption. This outlook is capping upside expectations for near-term price appreciation.
Trade Uncertainty Adds Pressure to Physical Market
Adding to bearish pressure, spot market prices retreated last week. Henry Hub fell 40.5 cents to $3.670, while NGI’s Spot Gas National Average declined 17.0 cents to $3.045. Ever-changing tariff headlines surrounding U.S.–China relations are sowing uncertainty across energy markets, further limiting speculative appetite.
Market Forecast: Bearish Bias Likely to Persist
With technical support under threat, a tepid storage build, soft spot pricing, and only modest demand expected this week, the market skews bearish in the short term. Unless futures can reclaim $3.361 and push toward the 50-day moving average, further downside toward $2.995 remains the most probable path.
More Information in our Economic Calendar.
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