US: EIA Natural Gas Report


Thu Apr 12 09:30:00 CDT 2018

Actual Previous
Weekly Change -19bcf -29bcf

Highlights
Natural gas in storage fell 19 billion cubic feet in the April 6 week to 1,335 bcf. The uncharacteristic drawdown in the first week of the traditional start of the injection season, when weekly builds are the norm, compares with a 10 bcf increase last year and a 16 bcf average increase over the last five years in the comparable week. Draws of 20 bcf and 12 bcf in the Midwest and East regions, respectively, more than offset builds in the other regions of the country. Gas stocks remained within the 5-year historical range for this time of year but were 35.2 percent below last year's level and 21.9 percent below the 5-year average for the period.

Definition
The Energy Information Administration (EIA) provides weekly information on natural gas stocks in underground storage for the U.S. and five regions of the country. The level of inventories helps determine prices for natural gas products.

Description
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 may lead to increases in natural gas prices. 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 natural gas prices.