Natural gas in storage rose 77 billion cubic feet in the October 14 week to 3,836 bcf. The year-on-year gain in gas stocks continued to shrink due to smaller weekly builds than last year, and at 46 bcf is likely to disappear in next week's report. With the drawdown phase of the annual cycle approaching, gas stocks remain above the 5-year historical range for this time of year and are still 185 bcf above the 5-year average of 3,651 bcf.
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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