Natural gas in storage fell 152 billion cubic feet in the February 3 week to 2,559 bcf. The weekly drawdown was more than twice as large as the decline in the same week a year ago and puts stocks 11.3 percent below their level last year at this time. Stock were 1.8 percent above the 5-year average for the current point in the drawdown phase of the annual cycle and remain within 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.