US: EIA Natural Gas Report

Thu Sep 07 09:30:00 CDT 2017

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Weekly Change 65bcf 30bcf

Natural gas in storage rose 65 billion cubic feet in the September 1 week to 3,220 bcf. The twenty-third consecutive weekly increase since the traditional end of the heating season ( and 9 weeks before the injection season) was in line with most analysts forecasts but well above the 38 bcf build of the same week a year ago. The increase put stocks 6.2 percent below their level last year at this time, when inventories were still enlarged by due to decreased consumption during a an exceptionally mild weather heating season. But in a longer term comparison, stocks were 0.5 percent higher than the 5-year average for this time of year and remain in the upper half of the historical range. Hurricane Harvey impacted both the demand and supply side, but its impeding of exports of liquid natural gas more than offset natural gas production interruptions it caused.

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.

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.