Investing.com - U.S. natural gas futures declined in North America trade on Thursday, after data showed that natural gas supplies in storage in the U.S. rose more than expected last week.
Natural gas for delivery in July on the New York Mercantile Exchange shed 3.1 cent, or 1.2%, to trade at $2.645 per million British thermal units by 14:32GMT, or 10:32AM ET. Prices were at around $2.681 prior to the release of the supply data.
The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended June 17 rose by 62 billion cubic feet, above forecasts for an increase of 58 billion.
That compared with builds of 69 billion cubic feet in the prior week, 73 billion a year earlier and a five-year average of 88 billion cubic feet.
Total U.S. natural gas storage stood at 3.103 trillion cubic feet, 19.9% higher than levels at this time a year ago and 21.9% above the five-year average for this time of year.
Unless intense summer heat boosts demand from power plants, stockpiles will test physical storage limits of 4.3 trillion cubic feet at the end of October.
Meanwhile, updated weather forecasting models continued to show above-normal temperatures across most parts of the U.S. over the next two weeks.
Natural gas prices are up nearly 40% since late May as expectations have grown that hot summer weather will lead to heavy demand.
Demand for natural gas tends to rise in the summer months as warmer temperatures increase the need for gas-fired electricity to power air conditioning.
Elsewhere on the Nymex, crude oil for delivery in August inched up 45 cents, or 0.94%, to trade at $49.58 a barrel, while heating oil for July delivery dipped 0.1% to trade at $1.504 per gallon.