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US: EIA Natural Gas Report
| Actual | Previous | |
| Week over Week | -54bcf | 35bcf |
Highlights
Natural gas in storage declines by 54 billion cubic feet to 1,829 billion in the March 20 week from 1,883 bcf in the prior week. Natural gas in storage is up by 90 bcf from the year-ago week or 5.2 percent.
Compared with the 5-year average of 1,815, natural gas stocks in the latest week are up 14 bcf or 0.8 percent.
The weekly decline follows the prior week's rise in natural gas in storage by 35 bcf and marks a return to a string of declines for extraction season, including some very large drops during the cold weather affecting much of the US in the last two months.
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.