US: EIA Natural Gas Report

Thu Mar 01 09:30:00 CST 2018

Actual Previous
Weekly Change -78bcf -124bcf

Natural gas in storage fell 78 billion cubic feet in the February 23 week to 1,682 bcf. While the comparable week last year registered an atypical increase of 7 bcf, the fifteenth weekly drawdown of the heating season was smaller than the average decrease of 119 bcf for the comparable week over the last 5 years. Gas stocks remained within the 5-year historical range, but were 28.8 percent below the level last year at this time and 18.1 percent below the 5-year average for the period.

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.