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 EIA report, "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.
© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.