Supplies are 133 billion cubic feet, or 7.6 percenNatural Gas Rises as Supplies Decline Below Year-Ago Level
By Reg Curren
Feb. 28 (Bloomberg) -- Natural gas advanced after a government report showed U.S. supplies fell to a level below that of a year ago.
Stockpiles fell 151 billion cubic feet to 1.619 trillion cubic feet for the week ended Feb. 22, the U.S. Energy Department report at 10:30 a.m. showed. Supplies were 1.752 trillion on Feb. 22, 2007, the department said.
``We've seen significant withdrawals already this heating season,'' said Michael Dane, an analyst at SunTrust Robinson Humphrey in Houston. ``The good thing for bulls is there's going to be another withdrawal reported next week of probably 145 billion'' because of cold weather.
Gas for April delivery rose 29.1 cents, or 3.2 percent, to $9.351 per million British thermal units at 11:01 a.m. on the New York Mercantile Exchange. Futures earlier touched $9.363. Were gas to close at that price, it would be the highest since January 2006.
Analysts had forecast a withdrawal of 157 billion cubic feet, according to the median of 25 estimates compiled by Bloomberg. The average change for this time of year is a decline of 141 billion cubic feet, according to department data.
Supplies are 133 billion cubic feet, or 7.6 percent, below A year ago, the department said.
``At the end of the day, we'll exit the heating season 200 billion cubic feet below last year,'' said Dane.
To contact the reporter on this story: Reg Curren in Calgary at rcurren@bloomberg.net .
Last Updated: February 28, 2008 11:06 EST