Natural Gas Moves Higher after 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 132 Bcf, which was more than expected, as analysts' anticipated a draw-down of 129 Bcf.
The commodity moved slightly lower initially, but has since slightly bounced much higher.
From the EIA report, "Working gas in storage was 2,966 Bcf as of Friday, January 27, 2012, according to EIA estimates. This represents a net decline of 132 Bcf from the previous week. Stocks were 586 Bcf higher than last year at this time and 601 Bcf above the 5-year average of 2,365 Bcf. In the East Region, stocks were 218 Bcf above the 5-year average following net withdrawals of 100 Bcf. Stocks in the Producing Region were 310 Bcf above the 5-year average of 789 Bcf after a net withdrawal of 22 Bcf. Stocks in the West Region were 73 Bcf above the 5-year average after a net drawdown of 10 Bcf. At 2,966 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 4.5% on the session at $2.49; down about 17% on the year.
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