US: EIA Natural Gas Report

Thu Dec 08 09:30:00 CST 2016

Actual Previous
Weekly Change -42bcf -50bcf

Natural gas in storage fell 42 billion cubic feet in the December 2 week to 3,953 bcf. The decline marked the third consecutive drawdown since the start of the annual drawdown phase in the November 18 week. It was smaller than in the comparable week a year ago, however, and the year-on-year gain widened by 0.7 percentage points to 1.3 percent. Gas in storage is 6.9 percent higher than the 5-year historical average of 3,699 bcf and remains above the historical range for the current period.

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.