Natural Gas Spikes Lower Initially 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 78 Bcf, which was less than expected, as analysts' anticipated a draw-down of 86 Bcf.
The commodity spiked lower initially, but has since slightly bounced much higher.
From the EIA report, "Working gas in storage was 2,888 Bcf as of Friday, February 3, 2012, according to EIA estimates. This represents a net decline of 78 Bcf from the previous week. Stocks were 714 Bcf higher than last year at this time and 714 Bcf above the 5-year average of 2,174 Bcf. In the East Region, stocks were 276 Bcf above the 5-year average following net withdrawals of 59 Bcf. Stocks in the Producing Region were 351 Bcf above the 5-year average of 737 Bcf after a net withdrawal of 11 Bcf. Stocks in the West Region were 87 Bcf above the 5-year average after a net drawdown of 8 Bcf. At 2,888 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 trading over 2.4% higher on the session at $2.50; down about 17% on the year.
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