Natural gas is spiking after the Energy Information Administration (EIA) reported a large drawdown in natural gas inventories. Gas investors, such as in United States Natural Gas (UNG), can thank the cold weather.
EIA: Working gas in storage was 3,773 Bcf as of Friday, December 4, 2009, according to EIA estimates. This represents a net decline of 64 Bcf from the previous week.
AP: Temperatures dropped to 10 degrees from Des Moines to Chicago, and frigid winds have forced chill values as low as negative 25 in parts of Wisconsin, Iowa and Illinois, according to the National Weather Service.
Still, gas in storage remains well above the normal range, as shown in the chart below. Yet given the depressed state of natural gas, it doesn’t take much to cause a pop. Check out the EIA natural gas update here.