Gas Rises Despite Higher Storage
September 27, 2012
The Energy Information Administration reported Thursday at 10:30 A.M. that natural gas storage had risen 80 billion cubic feet for the week ending September 21, above predictions. Analysts had expected the storage to have increased from 74 to 78 billion cubic feet. Despite this data, natural gas prices did not go down in the recent aftermath of the report; rather, they increased. Prices have been steadily rising lately; because natural gas is being used more than expensive coal, there has been an increase of natural gas powered electricity. It will take a significant increase in gas prices for there to be competitive pricing between natural gas and coal.
Natural gas futures for November were up 1.62% after the news to $3.27 a couple hours after the announcement. (Futures contracts switched to from October to November today, thereby increasing the futures price because of higher demand.)