Underground U.S. natural gas storage declined by 102 billion cubic feet last week but supplies remain at above-average levels, according to data released by the Energy Information Administration (EIA). The drawdown was slightly smaller than the consensus estimate of -105 bcf, but more than the 24 bcf decrease reported last week.
The EIA said total gas in storage was 1,793 bcf, and that supplies are higher than at this time last year and above the five-year average.
Kohn Says AIG Failure Would Have Been Disastrous
A bailout of AIG was inevitable in order to protect the financial system, said Fed Vice-Chairman Donald Kohn in testimony before the Senate Committee on Banking, Housing, and Urban Affairs.
Echoing comments made by policy-makers from the U.S. Treasury and the Federal Reserve, Kohn said the Fed's opinion is that, "in this time of severe market and economic stress, the failure of AIG would impose unnecessary and burdensome losses on many individuals, households and businesses, disrupt financial markets, and greatly increase fear and uncertainty about the viability of our financial institutions."
Canadian Ivey PMI Rebounds from Record Low
Canada's Ivey purchasing managers' index rebounded to 45.2 in February. Economists had expected a reading of 37.8 following December's previous all-time low of 36.1.
