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 increased 11 bcf, which was more than expected, as analysts' anticipated an inventory increase of 9 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 2,380 Bcf as of Friday, March 16, 2012, according to EIA estimates. This represents a net increase of 11 Bcf from the previous week. Stocks were 766 Bcf higher than last year at this time and 835 Bcf above the 5-year average of 1,545 Bcf. In the East Region, stocks were 356 Bcf above the 5-year average following net withdrawals of 10 Bcf. Stocks in the Producing Region were 373 Bcf above the 5-year average of 612 Bcf after a net injection of 20 Bcf. Stocks in the West Region were 107 Bcf above the 5-year average after a net addition of 1 Bcf. At 2,380 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 3% lower on the session at $2.28.
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.