Investing.com - Natural gas futures extended losses on Thursday, after data showed that U.S. natural gas supplies fell less than expected last week.
On the New York Mercantile Exchange, natural gas for delivery in April tumbled 11.7 cents, or 4.01%, to trade at $2.804 per million British thermal units during U.S. morning hours. Prices were at around $2.843 prior to the release of the supply data.
Futures were likely to find support at $2.680 per million British thermal units, the low from March 16, and resistance at $2.935, the high from March 18.
The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended March 13 fell by 45 billion cubic feet, compared to expectations for a decline of 48 billion.
Supplies fell by 69 billion in the same week last year, while the five-year average change is a decline of 45 billion cubic feet.
Total U.S. natural gas storage stood at 1.467 trillion cubic feet. Stocks were 507 billion cubic feet higher than last year at this time and 225 billion cubic feet below the five-year average of 1.692 trillion cubic feet for this time of year.
On Wednesday, natural gas for delivery in April surged 6.5 cents, or 2.28%, to settle at $2.920 as a cold blast was expected to hit the U.S. Northeast later this week, boosting near-term demand expectations for the heating fuel.
However, any significant gains were likely to remain in check in the near-term as the coldest part of the winter has effectively passed and below-normal temperatures in March mean less than they do in January and February.
The heating season from November through March is the peak demand period for U.S. gas consumption. Approximately 49% of U.S. households use natural gas for heating, according to the Energy Department.
Elsewhere on the Nymex, crude oil for delivery in May dropped $1.49, or 3.19%, to trade at $45.16 a barrel, while heating oil for April delivery slumped 2.76% to trade at $1.724 per gallon.