This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Nat Gas Soars on Slimmer Storage Gains

Stocks in this article: CVXXOMDO

NEW YORK ( TheStreet) -- Natural gas futures surged after the government reported a lighter-than-expected buildup in storage levels Thursday.

According to the Energy Information Administration's weekly assessment, natural gas storage in the lower 48 states saw a net injection of 73 billion cubic feet, raising levels to 1.829 trillion cubic feet for the week ending April 16. Analysts surveyed by Platts had expected inventory to rise between 76 to 80 billion cubic feet.

"We got spring fever a little too early," said Phil Flynn, energy analyst at PFGBEST. "The whisper number was a little higher than it should have been," he added, noting many overestimated the injection in light of recent warming temperatures around the country.

But despite the smaller buildup, natural gas levels remain higher than normal when compared to historical figures. According to the report, storage levels are 5.5% higher when compared with year-ago marks, and remain 18.5% higher when up against the five-year average.

Natural gas futures, which were trading lower just before the report's release, rose as high as $4.15 per million British thermal units during the day's session before settling higher by 17 cents, or 4.4%, at $4.13 per million British thermal units.

The U.S. Natural Gas Fund (UNG) also soared following the news, gaining 3.7% on the day.

Crude oil futures, however, mostly traded around $83 a barrel, a day after the EIA separately reported a larger-than-expected buildup in oil and fuel supplies. The June delivery contract slipped as low as $81.73 despite trading briefly above $84 a barrel, hitting $84.07 at its highest point of the session. The contract finished close to where it started, adding 2 cents, or 0.02%, to settle at $83.70 a barrel.

Flynn also noted a number of other catalysts affecting crude prices. Concerns about Greece's debt level weighed on the euro and strengthened the dollar, while the nation's wholesale inflation measure reflected a hotter-than-expected uptick in prices during March. Rising prices could signal a Federal Reserve rate hike in the near future, which could stifle economic growth.

"Then there's inventories. There, we're loaded," Flynn said. "It's getting harder and harder to ignore those numbers every week," later adding "if this isn't a glut, I don't know what is."

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,827.75 +12.81 0.07%
S&P 500 2,072.83 +5.80 0.28%
NASDAQ 4,787.3170 +29.0650 0.61%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs