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 57 bcf, which was slightly lower than estimates, as analysts anticipated an inventory build of 53 bcf.
The commodity initially spiked lower on heavy volume after the data was reported, as inventories increased more than what was anticipated.
From the EIA report, "Working gas in storage was 3,063 Bcf as of Friday, June 22, 2012, according to EIA estimates. This represents a net increase of 57 Bcf from the previous week. Stocks were 653 Bcf higher than last year at this time and 613 Bcf above the 5-year average of 2,450 Bcf. In the East Region, stocks were 288 Bcf above the 5-year average following net injections of 34 Bcf. Stocks in the Producing Region were 240 Bcf above the 5-year average of 890 Bcf after a net injection of 14 Bcf. Stocks in the West Region were 84 Bcf above the 5-year average after a net addition of 9 Bcf. At 3,063 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 3.8% loweron the session at $2.69. (NYSE: UNG)
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