Reaction Mixed after Natural Gas Storage Data
On Thursday morning at 10:30, the U.S. Energy Information Administration released its weekly report on natural gas stockpiles. Natural gas stockpiles declined 95 Bcf, which was more than expected, where analysts' anticipated a draw-down of 89 Bcf.
The commodity spiked higher initially, but has since slightly moved lower.
From the EIA report, "Working gas in storage was 3,377 Bcf as of Friday, January 6, 2012, according to EIA estimates. This represents a net decline of 95 Bcf from the previous week. Stocks were 398 Bcf higher than last year at this time and 491 Bcf above the 5-year average of 2,886 Bcf. In the East Region, stocks were 194 Bcf above the 5-year average following net withdrawals of 76 Bcf. Stocks in the Producing Region were 241 Bcf above the 5-year average of 938 Bcf after a net withdrawal of 16 Bcf. Stocks in the West Region were 56 Bcf above the 5-year average after a net drawdown of 3 Bcf. At 3,377 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 down 3.03% on the session at $2.68, trading at the lowest level since September 2009.
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