Natural Gas Spikes Higher 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 64 Bcf, which was more than expected, as analysts' anticipated a draw-down of 59 Bcf. The commodity spiked higher on heavy volume after the data was reported as inventories declined more than anticipated. From the

, "Working gas in storage was 2,369 Bcf as of Friday, March 9, 2012, according to EIA estimates. This represents a net decline of 64 Bcf from the previous week. Stocks were 735 Bcf higher than last year at this time and 807 Bcf above the 5-year average of 1,562 Bcf. In the East Region, stocks were 340 Bcf above the 5-year average following net withdrawals of 55 Bcf. Stocks in the Producing Region were 361 Bcf above the 5-year average of 604 Bcf after a net withdrawal of 2 Bcf. Stocks in the West Region were 106 Bcf above the 5-year average after a net drawdown of 7 Bcf. At 2,369 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% higher on the session at $2.33.