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 39 bcf, which was slightly lower than estimates, as analysts anticipated an inventory build of 43 bcf.
The commodity initially spiked higher on heavy volume after the data was reported, as inventories increased less than what was anticipated.
From the EIA report, "Working gas in storage was 3,102 Bcf as of Friday, June 29, 2012, according to EIA estimates. This represents a net increase of 39 Bcf from the previous week. Stocks were 602 Bcf higher than last year at this time and 573 Bcf above the 5-year average of 2,529 Bcf. In the East Region, stocks were 268 Bcf above the 5-year average following net injections of 35 Bcf. Stocks in the Producing Region were 216 Bcf above the 5-year average of 903 Bcf after a net withdrawal of 11 Bcf. Stocks in the West Region were 89 Bcf above the 5-year average after a net addition of 15 Bcf. At 3,102 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)
© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.