US: EIA Natural Gas Report

Thu Nov 30 09:30:00 CST 2017

Actual Previous
Weekly Change -33bcf -46bcf

Natural gas in storage fell 33 billion cubic feet in the November 24 week to 3,693 bcf. The third consecutive weekly decline in the third week of the heating season was smaller than the 50 bcf drawdown in the comparable week last year but exceeded the 27 bcf average decrease registered in the corresponding 48th week over the last 5 years. The week's drawdown puts natural gas stocks 7.7 percent below last year at this time, when they were exceptionally high due to lower heating consumption during the preceding mild winter. Though inventories are 2.8 percent below the 5-year average for this time of year, they are 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.