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US Natural Gas Inventory Fell for the 9th Consecutive Week

Gordon Kristopher - Author
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Aug. 18 2020, Updated 4:44 a.m. ET

EIA natural gas inventory report  

The EIA (U.S. Energy Information Administration) published its weekly US natural gas inventory report on January 28, 2016. The data highlighted that the US natural gas inventory had fallen by 211 Bcf (billion cubic feet) to 3,086 Bcf for the week ending January 22, 2016.

The natural gas inventory fell by 178 Bcf (billion cubic feet) to 3,297 Bcf for the week ending January 15.

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US natural gas inventory estimates 

The US natural gas inventory fell for the ninth consecutive week in the week ending January 22, 2016. Industry estimates suggested that the natural gas inventory could fall by 207 Bcf for the week. The higher-than-expected fall was priced in to the natural gas prices covered in the previous part of the series.

Natural gas inventory by region  

The natural gas inventory fell the most in the Midwest region, by 68 Bcf for the week ending January 22, 2016, compared to the previous week. South Central regions saw natural gas inventories fall by 66 Bcf for the same period.

During the same period, Eastern regions saw natural gas inventories fall by 63 Bcf. This suggests more demand for natural gas in these regions. The EIA divides the United States into five storage regions: the East, Midwest, Mountain, Pacific, and South Central regions.

The recent surge in natural gas prices benefits natural gas upstream companies such as Cabot Oil & Gas (COG), Rice Energy (RICE), Anadarko Petroleum (APC), Rex Energy (REXX), QEP Resources (QEP), and Gulfport Energy (GPOR). The natural gas productions of these companies are greater than 50% of their total production portfolios.

The roller coaster ride in the oil and gas market has affected ETFs and ETNs such as the Guggenheim S&P 500 Equal Weight Energy ETF (RYE), the VelocityShares 3X Long Natural Gas ETN (UGAZ), and the PowerShares DB Energy ETF (DBE).

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