The U.S. Energy Information Administration (EIA) reported on Thursday that natural gas storage inventories increased by 76 Bcf for the week ending May 1, 2015. The median estimate for the injection was 74 Bcf.
Natural gas prices for June ’15 futures dropped after the report’s release.
The EIA also reported that total stocks of natural gas (1,786 Bcf) were still higher than one year ago (1,044 Bcf) and remained below the 5-year average (1,853 Bcf).
Traders and investors are now looking to process the data after the commodity has risen 25 cents since last Thursday’s storage report. Resistance stands ahead $2.92 and $3.00. The commodity is likely to find support at $2.68, $2.57, and $2.50.
Moreover, it is likely that the next storage report from the EIA on May 14, 2015 (for the week ending May 8, 2015) will show the first triple digit injection of the season.
Likewise, the market will keep a close eye on the Baker Hughes Rig Count Report on Friday. Last Friday, Baker Hughes reported that natural gas rigs decreased by three rigs to a total of 222.
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