Investing.com - Natural gas futures rallied on Thursday, after data showed that U.S. natural gas supplies rose less than expected last week.
On the New York Mercantile Exchange, natural gas for delivery in September jumped 1.77%, or 6.7 cents, to trade at $3.853 per million British thermal units during U.S. morning hours. Futures traded at $3.781 prior to the release of the supply data
Natural gas prices ended Wednesday’s session down 0.99%, or 3.8 cents, to settle at $3.786.
Futures were likely to find support at $3.725 per million British thermal units, the low from July 28 and resistance at $3.892, the high from July 24.
The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended July 25 rose by 88 billion cubic feet, below expectations for an increase of 93 billion cubic feet.
The five-year average change for the week is an increase of 42 billion cubic feet.
Total U.S. natural gas storage stood at 2.307 trillion cubic feet. Stocks were 530 billion cubic feet less than last year at this time and 641 billion cubic feet below the five-year average of 2.948 trillion cubic feet for this time of year.
Natural gas prices have been under heavy selling pressure in recent sessions after updated weather-forecasting models called for mild summer weather across much of the U.S. over the next five days,
Demand for natural gas tends to fluctuate in the summer based on hot weather and air conditioning use.
Elsewhere on the Nymex, crude oil for delivery in September dipped 0.66%, or 66 cents, to trade at $99.61 a barrel, while heating oil for September delivery shed 0.28% to trade at $2.888 per gallon.