US: EIA Natural Gas Report

July 20, 2017 10:30 EDT

Actual Previous
Weekly Change 28bcf 57bcf

Natural gas in storage rose 28 billion cubic feet in the July 14 week to 2,973 bcf. The sixteenth consecutive weekly build since the traditional end of the heating season was smaller than the 34 bcf weekly increase in the same week last year but in line with expectations. The increase put natural gas stocks 9.1 percent below the level a year ago, when inventories were exceptionally high due to a mild winter that dampened heating season gas consumption. Gas stocks are 5.0 percent above the 5-year average, however, and in the upper half 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.