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 80 Bcf, which was less than expected, as analysts' anticipated a draw-down of 85 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 2,433 Bcf as of Friday, March 2, 2012, according to EIA estimates. This represents a net decline of 80 Bcf from the previous week. Stocks were 739 Bcf higher than last year at this time and 792 Bcf above the 5-year average of 1,641 Bcf. In the East Region, stocks were 333 Bcf above the 5-year average following net withdrawals of 60 Bcf. Stocks in the Producing Region were 352 Bcf above the 5-year average of 615 Bcf after a net withdrawal of 7 Bcf. Stocks in the West Region were 108 Bcf above the 5-year average after a net drawdown of 13 Bcf. At 2,433 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 1.8% lower on the session at $2.25.
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.