US: EIA Natural Gas Report

Thu Dec 29 09:30:00 CST 2016

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Weekly Change -237bcf -209bcf

Natural gas in storage fell 237 billion cubic feet in the December 23 week to 3,360 bcf, posting the largest weekly decline this year. Following the large 209 billion drop in the prior week, the decline took gas stocks 10.9 percent below last year's level at this time. Gas stocks were 2.3 percent below the 5-year average of 3,439 bcf for this time of 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.