US: EIA Natural Gas Report


October 15, 2020 09:30 CDT

Actual Previous
Week over Week 46bcf 75bcf

Highlights
Natural gas in storage rose 46 billion cubic feet in the October 9 week to 3,877 bcf. The twenty-eighth consecutive weekly build of the injection season was smaller than the 104 bcf increase recorded a year ago as well as the 91 bcf average build in the comparable week overt the last five years. Remaining above the 5-year historical range, gas stocks are 11.1 percent above their level a year ago and 10.0 percent higher than the 5-year average for this time of year.

Definition
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.

Description
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.