Natural Gas Spikes Lower after Storage Data
On Thursday morning at 10:30 ET, the U.S. Energy Information Administration released its weekly report on natural gas stockpiles. Natural gas stockpiles declined 82 Bcf, which was less than expected, as analysts' anticipated a draw-down of 90 Bcf.
The commodity spiked lower on heavy volume after the data was reported as inventories declined less than anticipated.
From the EIA report, "Working gas in storage was 2,513 Bcf as of Friday, February 24, 2012, according to EIA estimates. This represents a net decline of 82 Bcf from the previous week. Stocks were 756 Bcf higher than last year at this time and 780 Bcf above the 5-year average of 1,733 Bcf. In the East Region, stocks were 326 Bcf above the 5-year average following net withdrawals of 58 Bcf. Stocks in the Producing Region were 344 Bcf above the 5-year average of 630 Bcf after a net withdrawal of 19 Bcf. Stocks in the West Region were 111 Bcf above the 5-year average after a net drawdown of 5 Bcf. At 2,513 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 6% lower on the session at $2.45.
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