US: EIA Natural Gas Report

Thu Mar 08 09:30:00 CST 2018

Actual Previous
Weekly Change -57bcf -78bcf

Natural gas in storage fell 57 billion cubic feet in the March 2 week to 1,625 bcf. The sixteenth weekly drawdown of the heating season was smaller than the 68 bcf decrease in the comparable week last year and less than half of the 133 bcf average weekly decline for the period over the last 5 years. Gas stocks remained within the 5-year historical range for this time of year, but were a sharp 29.5 percent below the level a year ago and 15.6 percent below the 5-year average for the comparable 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.