US: EIA Natural Gas Report

Thu Mar 22 09:30:00 CDT 2018

Actual Previous
Weekly Change -86bcf -93bcf

Natural gas in storage fell 86 billion cubic feet in the March 16 week to 1,446 bcf. The eighteenth weekly drawdown of the heating season was smaller than the steep 150 bcf decline in the comparable week last year but larger than the 49 bcf average drawdown for the week over the last five years. Gas stocks remained within the 5-year historical range for this time of year, but were a sharp 31.6 percent below last year's level and 18.5 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.