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 28 bcf, which was lower than estimates, as analysts anticipated an inventory build of 34 bcf.
The commodity 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 3,163 Bcf as of Friday, July 13, 2012, according to EIA estimates. This represents a net increase of 28 Bcf from the previous week. Stocks were 509 Bcf higher than last year at this time and 470 Bcf above the 5-year average of 2,693 Bcf. In the East Region, stocks were 198 Bcf above the 5-year average following net injections of 23 Bcf. Stocks in the Producing Region were 186 Bcf above the 5-year average of 934 Bcf after a net injection of 1 Bcf. Stocks in the West Region were 86 Bcf above the 5-year average after a net addition of 4 Bcf. At 3,163 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 0.84 percent higher on the session at about $3.00.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.