US EIA data showed a US natural gas storage change of 36B for 27 March. This was below the expected 38B.<\/p>\n
The release indicates storage rose by 36B versus a forecast of 38B. The difference from expectations was 2B.<\/p>\n
Looking back to this time in 2025, we saw a weekly storage injection of 36 billion cubic feet, which was just under the 38 Bcf expectation. This signaled a relatively tight supply-demand balance as we ended that withdrawal season. The market at that point was sensitive to any signs of higher-than-expected demand.<\/p>\n
Our current situation in early April 2026 is markedly different, creating a much softer backdrop. We are entering the injection season with storage levels around 2,150 Bcf, which is more than 20% above the five-year average for this time of year. Furthermore, robust domestic production continues to hover near record highs of 105 Bcf\/day, keeping supply plentiful.<\/p>\n
Weather forecasts are also pointing towards bearish pressure, with milder-than-normal temperatures expected across much of the country for the next several weeks. While demand for LNG exports remains very strong, averaging a record 14.5 Bcf\/day, this steady pull may not be enough to counter the weak domestic demand. This setup suggests a cap on any significant near-term price rallies.<\/p>\n
For derivative traders, this environment suggests that selling out-of-the-money call options on the May and June 2026 contracts could be a prudent strategy. This approach allows us to collect premium while betting that the combination of high storage and mild weather will prevent a significant price spike. It offers a way to capitalize on range-bound or downward price action with defined risk.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" US EIA reported natural gas storage rose 36B on 27 March, missing forecasts by 2B.<\/p>\n","protected":false},"author":103,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-46254","post","type-post","status-publish","format-standard","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\n\t\t