US: EIA Natural Gas Report

Thu Sep 21 09:30:00 CDT 2017

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Weekly Change 97bcf 91bcf

Natural gas in storage rose 97 billion cubic feet in the September 15 week to 3,408 bcf. The twenty-fifth consecutive weekly increase since the traditional end of the heating season (and 7 weeks before the start of the injection season) far exceeded the 52 bcf build in the same week a year ago and was caused by reduced electricity generation power burn due to cooler weather conditions in the eastern US and some remaining power outages related to Hurricane Irma. The increase put stocks 3.8 percent below their level last year at this time, when they were bloated by low consumption during the preceding mild winter. In a longer term comparison, however, stocks were 2.0 percent above the 5-year average and in the upper half of the 5-year historical 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.