Natural gas in storage rose 29 billion cubic feet in the August 5 week to 3,317 bcf. Stocks resumed their regular upward climb following a 6 bcf decline in the prior week, which though small was unusual during the spring-summer build phase, when weekly increases are the norm. Year-on-year, gas stocks were up 12.2 percent, a 1.2 percentage point reduction from the prior week, as the gain continues to shrink due to the slower build pace in this year's spring-summer phase compared to last year.
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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