US: EIA Natural Gas Report

Thu Mar 09 09:30:00 CST 2017

Actual Previous
Weekly Change -68bcf 7bcf

Natural gas in storage fell 68 billion cubic feet in the March 3 week to 2,295 bcf. The modest drawdown following the prior week's surprising albeit small build puts stocks 7.7 percent below the large storage level last year this time, but 18.8 percent above the 5-year average for the comparable period and near the upper limit of the 5-year historical range.

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.