natural gas storage value, How it is effects natural gas commodity?

Well, I am bit shocked by natural gas storage value, just half an hour ago.. it was over the expected or forecast, BUT the price went DOWN of natural gas commodity, thus effected all? while week ago same day, The natural gas storage volume was,once again over then expected or for cast, but price Went up?

WHAT is THE reason today, this weeks natural storage volume that it took natural gas commodity’s price down? while it was up?

2 Responses to “natural gas storage value, How it is effects natural gas commodity?”

  1. John W Says:

    Energy demand for air-conditioning has dropped in the south (peak daytime demand on the electrical grid is met by the more expensive natural gas generators). Heating demand in the north hasn’t started yet.

  2. Jerry Says:

    US inventories of natural gas are cyclical. Inventories build up over the summer when there is less demand. Inventories are drawn down over the winter as more gas is used for heating.

    Gas comes from three sources; domestic drilling, import via pipelines, import via LNG shipments.

    Each week an inventory value (really an estimate) is reported by the Department of Energy. That is compared to estimates by Wall Street analysts. It is also compared to the inventory for the previous year for the same time, and to the 5-year average for the same date.

    The commodity price will tend to react to the difference between the reported number and the analyst estimates, but many other factors influence price as well. It is not realistic to expect 100% correlation between prices and inventory.

    There is a wealth of information on the Energy Information Administration website. Link below.