Thursday, December 10, 2009

Cold weather draws down natural gas supplies

Natural gas prices jumped in trading today after the Energy Information Administration reported a larger-than-expected 64 billion cubic feet (bcf) decline in supplies to 3,773 bcf.

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The relatively mild summer and weak industrial demand this year has left ample supplies of the commodity used to heat a majority of homes in the US, as stocks are still 472 bcf higher than last year at this time and 513 bcf above the 5-year average.

Consequently, prices remain low compared to much of the decade.

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