Natural Gas Spikes Higher 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 127 Bcf, which was more than expected, as analysts' anticipated a draw-down of 120 Bcf.
The commodity spiked lower initially, but has since slightly bounced much higher.
From the EIA report, "Working gas in storage was 2,761 Bcf as of Friday, February 10, 2012, according to EIA estimates. This represents a net decline of 127 Bcf from the previous week. Stocks were 817 Bcf higher than last year at this time and 765 Bcf above the 5-year average of 1,996 Bcf. In the East Region, stocks were 302 Bcf above the 5-year average following net withdrawals of 83 Bcf. Stocks in the Producing Region were 365 Bcf above the 5-year average of 686 Bcf after a net withdrawal of 37 Bcf. Stocks in the West Region were 99 Bcf above the 5-year average after a net drawdown of 7 Bcf. At 2,761 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 4.3% higher on the session at $2.52; down about 17% on the year.
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