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 33 bcf, which was higher than estimates, as analysts anticipated an inventory build of 27 bcf.
The commodity 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 3,135 Bcf as of Friday, July 6, 2012, according to EIA estimates. This represents a net increase of 33 Bcf from the previous week. Stocks were 548 Bcf higher than last year at this time and 516 Bcf above the 5-year average of 2,619 Bcf. In the East Region, stocks were 229 Bcf above the 5-year average following net injections of 20 Bcf. Stocks in the Producing Region were 196 Bcf above the 5-year average of 923 Bcf after no net change in stock levels. Stocks in the West Region were 92 Bcf above the 5-year average after a net addition of 13 Bcf. At 3,135 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 3.7 percent lower on the session at $2.747.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.