Investing.com - Natural gas futures edged higher on Friday, as forecasts for above-average temperatures across much of the U.S. in the next two weeks boosted summer cooling demand for the fuel.
On the New York Mercantile Exchange, natural gas for delivery in August tacked on 1.6 cents, or 0.56%, to close at $2.870 per million British thermal units by late Friday.
For the week, the August natural gas contract rose 5.4 cents, or 3.61%, as forecasts pointed to warmer-than-normal temperatures across many regions through the end of July, boosting summer cooling demand for the fuel.
Hotter-than-normal summer temperatures increase the need for gas-fired electricity to cool homes, boosting demand for natural gas. Natural gas accounts for about a quarter of U.S. electricity generation.
On Thursday, natural gas plunged 6.4 cents, or 2.19%, to end at $2.854 after data showed that U.S. natural gas supplies rose more than expected last week.
According to the U.S. Energy Information Administration, natural gas storage in the U.S. rose by 99 billion cubic feet, compared to expectations for an increase of 95 billion and following a build of 91 billion cubic feet in the preceding week.
Supplies rose by 105 billion cubic feet in the same week last year, while the five-year average change is an increase of 71 billion cubic feet.
Total U.S. natural gas storage stood at 2.767 trillion cubic feet as of last week, 30.9% higher than during the same week a year earlier and 2.7% above the five-year average for this time of year.
Last spring, supplies were 55% below the five-year average, indicating producers have made up for all of last winter’s unusually strong demand.
The EIA's next storage report slated for release on Thursday, July 23 is expected to show a build of approximately 60 billion cubic feet for the week ending July 17.
Supplies rose by 92 billion cubic feet in the same week last year, while the five-year average change is an increase of 53 billion cubic feet.
Elsewhere on the Nymex, crude oil for September delivery settled at $51.21 a barrel by close of trade on Friday, down $1.26, or 3.51%, on the week, while heating oil for August delivery dropped 4.36% on the week to settle at $1.664 per gallon.