Natural gas in storage dropped by a huge 117 billion cubic feet to 3,719 billion cubic feet in the Dec. 1 week after rising by 10 bcf to 3,836 billion in the Nov 24 week.

Natural gas in storage rose by 254 bcf or 7.3 percent in the Dec. 1 week from the year-ago week. Compared against the 5-year average, natural gas stocks in the latest week were up 234 bcf or 6.7 percent.

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.