US: EIA Natural Gas Report

Thu Jan 04 09:30:00 CST 2018

Actual Previous
Weekly Change -206bcf -112bcf

Natural gas in storage fell 206 billion cubic feet in the December 29 week to 3,126 bcf. The seventh weekly drawdown of the heating season was more than 4 times the size of the 49 bcf draw in the same week a year ago and sharply higher than the 123 bcf average drawdown in the comparable week over the last 5 years. While natural gas stocks were 5.8 percent below their level last year at this time and also 5.8 percent below the 5-year average for this time of year, they still remain 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.