U.S. natural gas prices (/NG) surged higher on Thursday afternoon following the release of the Energy Information Administration’s (EIA) weekly inventory figures for the week ending August 18. The report revealed an 18 billion cubic feet (bcf) build, significantly missing the 33 bcf consensus estimate and falling short of the previous week’s 35 bcf increase.
The market’s reaction to the smaller-than-expected build is not surprising, even amidst falling equity and crude oil prices on Wall Street. A brutal heat dome is currently causing record and near-record temperatures across much of the Midwest and the South. Although some short-term relief is expected for the Midwest, the eight- to 14-day temperature outlook indicates high temperatures should return soon. This is likely to stave off bearish price action for the time being.
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