US: EIA Natural Gas Report

Thu Nov 02 09:30:00 CDT 2017

Actual Previous
Weekly Change 65bcf 64bcf

Natural gas in storage rose 65 billion cubic feet in the October 27 week to 3,775 bcf. The thirty-first consecutive weekly increase since the traditional end of the heating season (and 1 week before the end of the injection season) exceeded the 54 bcf build in the same week a year ago, but stocks remain 4.6 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, natural gas inventories are 1.1 percent below the 5-year average for this time of year, and remain within the 5-year historical range for the period.

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.