US: EIA Natural Gas Report

Thu Sep 14 09:30:00 CDT 2017

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Weekly Change 91bcf 65bcf

Natural gas in storage rose 91 bcf billion cubic feet in the September 8 week to 3,311 bcf. The twenty-fourth consecutive weekly increase since the traditional end of the heating season (and 8 weeks before the start of the injection season) exceeded forecasts of a build of around 85 bcf. The outsized build came mostly as a result of reduced electricity generation power burn in the Southeast states, especially Florida, where Hurricane Irma caused large scale power outages. Stocks stood 5.1 percent below their level last year at this time but 1.3 percent above the 5-year average and in the upper half of the 5-year range for this time of year.

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.