The U.S. Energy Information Administration (EIA) reported a 92 billion cubic feet (Bcf) increase in natural gas inventories for the week ending May 22. This build fell short of the market consensus forecast of 94 to 96 Bcf. The injection trailed the 104 Bcf increase recorded during the same week last year. The figure also remained below the five-year average increase of 97 Bcf, signaling a tightening inventory surplus.
Natural gas futures prices surged immediately following the report's release. The front-month contract jumped 5 cents per MMBtu within minutes of the announcement. July contract prices climbed more than 10 cents to approximately $3.196/MMBtu. Traders reacted to the bullish supply data, which suggests stronger demand or weaker production than previously anticipated.