US: EIA Natural Gas Report

Thu Nov 09 09:30:00 CST 2017

Actual Previous
Weekly Change 15bcf 65bcf

Natural gas in storage rose 15 billion cubic feet in the November 3 week to 3,790 bcf. The thirty-second consecutive weekly increase finishes the injection season and signals the traditional start of the heating season, when weekly drawdowns are the norm. The week's build was much smaller than the 54 bcf increase in the same week a year ago, putting stocks 5.5 percent below the level last year at this time, when they were bloated by inventory left over from the preceding unusually mild winter. Having crossed below the 5-year average in September, natural gas inventories stood 1.8 percent below the 5-year average for this time of year, though still within the 5-year historical 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.