Natural Gas Market Review: Storage Report Impacts Trading
Capital — April 17, 2025 — Natural gas futures trading was volatile on Thursday’s session, considerably influenced by weather forecasts and the latest storage report. The front-month NYMEX natural gas contract initiated trading below the previous day’s closing price, experiencing fluctuations throughout the day while reacting to market expectations.
Natural Gas Market Review: Storage Report Impacts Trading
Thursday’s Trading Overview
Natural gas futures experienced a volatile trading session on Thursday, April 17, 2025, influenced by weather forecasts and a key storage report. The front-month NYMEX natural gas contract opened at $3.219, a slight dip from the previous day’s close.
- Opening bell: The contract began trading $0.028 below Wednesday’s closing price of $3.247.
- Intraday Fluctuations: Prices initially fell to an intraday low of $3.199 but quickly rebounded,reaching near $3.265 in anticipation of the weekly storage data.
- Storage Report Surge: Following the release of a bullish storage report, the contract surged to an intraday high of $3.322.
- Midday and close: The contract then retreated, trading around $3.287 at midday and eventually closing nearly flat at $3.245.
Comfortable weather forecasts and weak demand tempered the impact of the smaller-than-expected storage injection, leading to a relatively stable close.
EIA storage Report: Key Insights
The Energy Information Administration (EIA) Natural Gas Storage Report revealed a important deviation from market expectations.The report, released on Thursday, indicated a smaller injection than anticipated.
- Injection volume: The report showed a 16 BCF (billion cubic feet) injection to storage for the week ending April 11.
- Market estimate: This figure fell short of the market’s expectation of a 25 BCF injection.
- Storage Levels: Total working gas in storage was reported at 1,846 BCF.
- Year-Over-Year Comparison: This level is 20.6% below the same time last year.
- Five-Year Average: It is also 3.9% below the five-year average.
The lower-than-expected injection raised concerns about supply adequacy, contributing to the price volatility observed during the trading session.
Market Holiday and Early Morning Trading
Friday, April 18, 2025, was a market holiday in observance of Good Friday, resulting in no trading activity.
As of 7:45 AM, early morning Globex trading indicated downward pressure across various energy commodities:
- WTI Crude: Down $1.590
- Natural Gas: Down $0.063
- Heating Oil: Down $0.036
- Gasoline: Down $0.039
Expert Analysis
Market analysts closely monitor these fluctuations to provide insights into future trends.The interplay between storage levels, weather patterns, and demand continues to shape the natural gas market.
“Comfortable weather forecasts and weak demand overshadowed the seasonally small injection.”
