Natural gas storage inventories during the week ending Oct. 1 rose by a stunning 118 Bcf, according to the Energy Information Administration (EIA).

storage Oct. 7

The triple-digit injection came in about 10 Bcf higher than market consensus and promptly sent Nymex futures, already sharply lower, tumbling further. In the minutes leading up to the EIA’s weekly storage inventory report, the November Nymex gas futures contract was trading down about 15.0 cents day/day at around $5.520/MMBtu. As the print crossed trading desks, the prompt month slid to $5.500.

However, traders appeared uncertain whether further price downside was warranted, given the still tight supply backdrop overseas and likelihood of robust export demand in the coming months. By 11 a.m. ET, November futures were back at...