US: EIA Natural Gas Report

Thu Jan 25 09:30:00 CST 2018

Actual Previous
Weekly Change -288bcf -183bcf

Natural gas in storage fell 288 billion cubic feet in the January 19 week to 2,296 bcf. The tenth weekly drawdown of the heating season was more than double the size of the 119 bcf draw in the comparable week last year and well above the average 167 bcf decline for the week over the last five years. The level of gas stocks was down 18.4 percent year-on-year and 17.5 percent below the 5-year average for this time of year, standing below the 5-year historical range for the first time in at least two years.

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.