Natural gas in storage rose 30 billion cubic feet in the November 11 week to 4,047 bcf. Stocks were 1.3 percent above the level last year at this time and 5.6 percent above the 5-year average for the same period. The week marks the end of the build phase of the gas-in-storage cycle, and stocks should begin to fall in subsequent weeks as gas in storage is drawn down during the winter and early spring heating season.
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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