Velocityshares 3X Inverse Natural Gas Etn (DGAZ)

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US Natural Gas Inventories: Bearish Catalyst for Natural Gas


The EIA (U.S. Energy Information Administration) released its weekly natural gas inventory report on March 16, 2017. It reported that US natural gas inventories fell by 53 Bcf (billion cubic feet) to 2,242 Bcf from March 3–10, 2017.

However, US natural gas inventories hit 4,047 Bcf for the week ending November 11, 2016—the highest level ever.

What’s the impact?
For the week ending March 10, 2017, US natural gas inventories are 21.4% higher than their five-year average. High inventories could pressure natural gas prices. US natural gas inventories are the biggest bearish driver of natural gas prices after production. However, cold weather could drive prices in the short term. For more on the weather, read the previous parts of the series.



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