US: EIA Natural Gas Report

Thu Jan 11 09:30:00 CST 2018

Actual Previous
Weekly Change -359bcf -206bcf

Natural gas in storage fell 359 billion cubic feet in the January 5 week to 2,767 bcf, posting the largest weekly decline in at least five years. The eighth weekly drawdown of the heating season was more than double the 151 bcf draw in the same week a year ago and sharply above the 209 bcf average drawdown in the comparable week over the last five years. While natural gas stocks were 13.0 percent below their level last year at this time and 12.1 percent below the 5-year average for the period, they remain within but near the bottom of 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.