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

, "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.