US: EIA Natural Gas Report


Thu Mar 24 09:30:00 CDT 2016

Actual Previous
Weekly Change 15bcf -1bcf

Highlights
Natural gas in storage rose 15 billion cubic feet in the March 18 week to 2,493 bcf.

Definition
The Energy Information Administration (EIA) provides weekly information on natural gas stocks in underground storage for the U.S. and three regions of the country. The level of inventories helps determine prices for natural gas products.

Description
Natural gas product prices are determined by supply and demand - just like any other good and service. During periods of strong economic growth, one would expect demand to be robust. If inventories are low, this will lead to increases in natural gas. If inventories are high and rising in a period of strong demand, prices may not need to increase at all, or as much. During a period of sluggish economic activity, demand for natural gas may not be as strong. If inventories are rising, this may push down oil prices.