Natural Gas Reaction Mixed after Storage Data
On Thursday morning at 10:30, the U.S. Energy Information Administration released its weekly report on natural gas stockpiles. Natural gas stockpiles declined 192 Bcf, which was more than expected, as analysts' anticipated a draw-down of 175 Bcf.
The commodity moved slightly higher initially, but has since slightly bounced lower.
From the EIA report, "Working gas in storage was 3,098 Bcf as of Friday, January 20, 2012, according to EIA estimates. This represents a net decline of 192 Bcf from the previous week. Stocks were 531 Bcf higher than last year at this time and 547 Bcf above the 5-year average of 2,551 Bcf. In the East Region, stocks were 202 Bcf above the 5-year average following net withdrawals of 122 Bcf. Stocks in the Producing Region were 284 Bcf above the 5-year average of 837 Bcf after a net withdrawal of 43 Bcf. Stocks in the West Region were 61 Bcf above the 5-year average after a net drawdown of 27 Bcf. At 3,098 Bcf, total working gas is above the 5-year historical range."
Natural Gas has been a very volatile commodity over the last number of years. The commodity that helps heat our homes has seen lows of under $2.00 and highs of over $15.00. However, within the last few years, natural gas has not traded above $10.00. The commodity has been in a downtrend ever since 2008.
Currently, natural gas futures are down 5.61% on the session at $2.57; down about 14% on the year.
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