US: EIA Natural Gas Report

Thu Dec 28 09:30:00 CST 2017

Actual Previous
Weekly Change -112bcf -182bcf

Natural gas in storage fell 112 billion cubic feet in the December 22 week to 3,332 bcf. The sixth weekly drawdown of the heating season was less than half of the 237 bcf decline in the same week in 2016 but only marginally below the 114 bcf average drawdown in the comparable week over the last 5 years. Natural gas stocks were 1.8 percent below their level last year at this time and 2.5 percent below the 5-year average for the period, while remaining well 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.