Investing.com - Natural gas futures extended losses to hit a three-week low on Thursday, after data showed that U.S. natural gas supplies rose more than expected last week.
On the New York Mercantile Exchange, natural gas for delivery in June traded at $4.603 per million British thermal units during U.S. morning hours, down 2.9%, or 13.8 cents. Futures traded at $4.687 prior to the release of the supply data.
Natural gas futures fell to a session low of $4.591 per million British thermal units earlier in the day, the weakest level since April 17. The June contract lost 1.23%, or 5.9 cents, on Wednesday to settle at $4.740 per million British thermal units.
Futures were likely to find support at $4.487 per million British thermal units, the low from April 17 and resistance at $4.827, the high from May 7.
The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended May 2 rose by 74 billion cubic feet, above forecasts for an increase of 71 billion cubic feet.
The five-year average change for the week is a build of 58 billion cubic feet.
Total U.S. natural gas storage stood at 1.055 trillion cubic feet. Stocks were 797 billion cubic feet less than last year at this time and 982 billion cubic feet below the five-year average of 2.037 trillion cubic feet for this time of year.
The report showed that in the East Region, stocks were 473 billion cubic feet below the five-year average, following net injections of 35 billion cubic feet.
Stocks in the Producing Region were 389 billion cubic feet below the five-year average of 844 billion cubic feet after a net injection of 27 billion cubic feet.
Producers would need to add 2.6 trillion to 2.9 trillion cubic feet to storage by November 1 to meet typical winter demand, analysts said.
Meanwhile, updated weather forecasting models called for warmer-than-average weather over much of the Midwest and Northeast, as well as the South, which was likely to lower heating demand.
Spring and fall see the weakest demand for natural gas in the U.S, as the absence of extreme temperatures curbs demand for heating and air conditioning.
Approximately 52% of U.S. households use natural gas for heating, according to the Energy Department.
Elsewhere on the Nymex, U.S. crude oil for delivery in June shed 0.67%, or 68 cents, to trade at $100.09 a barrel, while heating oil for June delivery declined 0.55% to trade at $2.911 per gallon.