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.
The update refers to working gas held in underground storage in the United States. It measures the weekly net change in stored volumes.
An 85 billion cubic feet build means more gas was added to storage than was withdrawn during the week.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.
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.
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.
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.
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.
