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 increased only 8 bcf, which was less than expected, as analysts' anticipated an inventory build of 21 bcf.
The commodity spiked higher on heavy volume after the data was reported as inventories increased less than anticipated.
From the EIA report, "Working gas in storage was 2,487 Bcf as of Friday, April 6, 2012, according to EIA estimates. This represents a net increase of 8 Bcf from the previous week. Stocks were 888 Bcf higher than last year at this time and 920 Bcf above the 5-year average of 1,567 Bcf. In the East Region, stocks were 428 Bcf above the 5-year average following net injections of 7 Bcf. Stocks in the Producing Region were 383 Bcf above the 5-year average of 659 Bcf after a net withdrawal of 3 Bcf. Stocks in the West Region were 109 Bcf above the 5-year average after a net addition of 4 Bcf. At 2,487 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 2.5% lower on the session at $2.05. (NYSE: UNG)
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