US: EIA Natural Gas Report

Thu Dec 14 09:30:00 CST 2017

Actual Previous
Weekly Change -69bcf 2bcf

Natural gas in storage fell 69 billion cubic feet in the December 8 week to 3,626 bcf. The fourth weekly drawdown of the heating season follows an atypical build in the prior week and though less than half of the outsized 147 drawdown during the comparable week last year slightly exceeds the 64 bcf average decrease for the same week during the last five years. Natural gas stocks were 5.3 percent below their level last year at this time, when they were exceptionally high largely due to inventory buildup caused by low heating consumption in the preceding mild winter. In a longer term comparison, stocks are 0.7 percent below their 5-year average for the period and roughly in the middle of their 5-year historical range for the week.

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.