US: EIA Natural Gas Report

Thu Apr 26 09:30:00 CDT 2018

Actual Previous
Weekly Change -18bcf -36bcf

Natural gas in storage fell 18 billion cubic feet in the April 20 week to 1,281 bcf. The third consecutive weekly drawdown since the traditional start of the injection season, when builds are the norm, contrasts with a 74 bcf build last year and a 68 bcf average build over the last five years in the comparable week. Gas stocks remained within the 5-year historical range for this time of year but were 41.2 percent below last year's level and 29.1 percent below the 5-year average for the period. A 17 bcf drawdown in the Midwest accounted for the bulk of the week's decline in stocks, as unseasonably cold April weather, especially in the Midwest and Northeast regions, continues to prolong the heating season.

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.