US: EIA Natural Gas Report

Thu Jan 18 09:30:00 CST 2018

Actual Previous
Weekly Change -183bcf -359bcf

Natural gas in storage fell 183 billion cubic feet in the January 12 week to 2,584 bcf. The ninth weekly drawdown of the heating season was smaller than the 243 bcf draw in the same week a year ago but slightly larger than the 178 bcf average weekly decline in the comparable week over the last five years. While remaining within the 5-year historical range for this time of year, natural gas stocks are down 12.5 percent year-on-year and 12.3 percent below the 5-year average.

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.