Inventories report sends natural gas prices higher

Natural gas prices were up on Thursday on the news that gas inventories were down by 224 billion cubic feet last week, more than the 218 billion cubic feet that most analysts had expected. Even so, total inventories are 19 percent above the average for the past five years, so analysts question whether there will be significant price hikes, even if cold weather in the US keeps demand high for an extended period of time. Nymex Henry Hub for March delivery was up 18 cents to $7.890 per million British thermal units after the report.

Crude oil prices were slightly higher after a significant decline after Wednesday’s inventory numbers were released for crude oil, gasoline, and distillates. March delivery Brent crude added 7 cents to $57.30 per barrel. West Texas Intermediate crude on the New York Mercantile Exchange was 32 cents higher to $58.03 per barrel. Wednesday’s price declines were blamed on negative sentiment generated by higher than expected gains in gasoline stockpiles as well as the repeated inability of crude oil prices to rise above the $60 level.