June Natural Gas futures recently tested the 50-day moving average, marking the fourth time in the last four sessions that prices temporarily crossed this key technical level before retreating. Market action followed the latest EIA report, which printed a build of 85 billion cubic feet. This figure fell in line with market expectations and closely mirrored the five-year average build. Consequently, total supplies have increased to 2,290 billion cubic feet, sitting 51 billion cubic feet higher than the same period last year.
Looking ahead, domestic natural gas demand is expected to remain moderate to low over the coming week. While a short-term temperature drop moves through the Great Lakes and Northeast, conditions across the rest of the U.S. will remain warm, with the Southwest and West Texas seeing temperatures climb into the 100s. As the weekend approaches, the eastern half of the country is forecast to warm up significantly while the West cools.