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 30 bcf, which was slightly lower than estimates, as analysts' anticipated an inventory build of 33 bcf.
The commodity initially moved slightly higher on heavy volume after the data was reported, as inventories increased basically in-line to what was anticipated.
From the EIA report, "Working gas in storage was 2,606 Bcf as of Friday, May 4, 2012, according to EIA estimates. This represents a net increase of 30 Bcf from the previous week. Stocks were 799 Bcf higher than last year at this time and 803 Bcf above the 5-year average of 1,803 Bcf. In the East Region, stocks were 400 Bcf above the 5-year average following net injections of 24 Bcf. Stocks in the Producing Region were 299 Bcf above the 5-year average of 739 Bcf after a net withdrawal of 2 Bcf. Stocks in the West Region were 104 Bcf above the 5-year average after a net addition of 8 Bcf. At 2,606 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 1.3% higher on the session at $2.49. (NYSE: UNG)
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.