US: EIA Natural Gas Report

Thu Feb 08 09:30:00 CST 2018

Actual Previous
Weekly Change -119bcf -99bcf

Natural gas in storage fell 119 billion cubic feet in the February 2 week to 2,078 bcf. The twelfth weekly drawdown of the heating season was smaller that both the 152 bcf draw in the comparable week last year and the 146 bcf average decline for the week over the last five years. Gas stocks were down 19.5 percent year-on-year and 15.9 percent below the 5-year average for the period, but were back within the 5-year historical range after having briefly fallen below it two weeks ago 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.