Natural gas in storage fell 25 billion cubic feet in the March 25 week to 2,468 bcf. Despite the decline, natural gas stocks remain at record levels for this time of year, up 68.3 percent from the 1,466 bcf in storage at this time last year and 51.9 percent above the five-year historical average of 1,625 bcf for the same period. Natural Gas futures fell about 3 cents to $1.972 per MMBtu following the release.
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.
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.
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