US: EIA Natural Gas Report

Thu Oct 26 09:30:00 CDT 2017

Actual Previous
Weekly Change 64bcf 51bcf

Natural gas in storage rose 64 billion cubic feet in the October 20 week to 3,710 bcf. The thirtieth consecutive weekly increase since the traditional end of the heating season (and 2 weeks before the end of the injection season) was smaller than the 73 bcf build in the same week a year ago and below the 5-year average build of 75 bcf for the period. The weekly increase put stocks 4.8 percent below their level last year at this time, when they were bloated by inventory left over from an unusually mild winter. In a longer term comparison, stocks are 1.2 percent below their 5-year average for this time of year, but remain close to the middle of the 5-year range.

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.