US Energy Information Administration data showed a natural gas storage build of 85 billion cubic feet for the week ending 8 May. The change matched forecasts of 85 billion cubic feet.<\/p>\n
The update refers to working gas held in underground storage in the United States. It measures the weekly net change in stored volumes.<\/p>\n
An 85 billion cubic feet build means more gas was added to storage than was withdrawn during the week. The reported figure meets the forecast level for that week.<\/p>\n
The natural gas storage injection of 85 billion cubic feet was exactly what the market was expecting, so we did not see a big price move. This removes some immediate uncertainty and tells us that supply is building at a normal pace for this time of year. For now, the market seems balanced.<\/p>\n
This latest injection brings our total working gas in storage to about 2,645 Bcf. This is a healthy cushion, sitting roughly 350 Bcf, or 15%, above the five-year average we saw back in 2025. This surplus should keep a lid on any major price rallies unless we get some surprise bullish news.<\/p>\n
With the storage report now behind us, our focus must shift completely to weather forecasts for the next two to six weeks. Early models are suggesting a warmer-than-average start to June for key consumption areas in Texas and the Southeast. A sustained heat wave would significantly increase cooling demand and begin to chip away at the storage surplus.<\/p>\n
Given the expected drop in volatility from the in-line report, we think this is a good time to look at buying options. The conflicting signals of a large storage surplus versus upcoming summer heat create the potential for a big price swing. Buying June or July call options offers a way to bet on a summer rally, while straddles could pay off if the market breaks sharply in either direction.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" EIA reported an 85 bcf U.S. natural gas storage build for week ending May 8, matching forecasts.<\/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":[66],"class_list":["post-53365","post","type-post","status-publish","format-standard","hentry","category-live-updates","tag-oil"],"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