Investing.com - Natural gas futures rallied sharply on Thursday, after data showed that U.S. natural gas supplies fell more than forecast last week.
On the New York Mercantile Exchange, natural gas for delivery in January rose 5.6 cents, or 1.51%, to trade at $3.758 per million British thermal units during U.S. morning hours. Prices were at $3.671 prior to the release of the supply data.
A day earlier, U.S. gas futures climbed 5.4 cents, or 1.48%, to settle at $3.706 per million British thermal units.
Futures were likely to find support at $3.585 per million British thermal units, the low from December 8, and resistance at $3.824, the high from December 5.
The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended December 5 fell by 51 billion cubic feet, more than expectations for a decline of 45 billion and compared to a drop of 22 billion in the previous week.
Inventories fell by 92 billion cubic feet in the same week a year earlier, while the five-year average change is a drop of 72 billion cubic feet.
Total U.S. natural gas storage stood at 3.359 trillion cubic feet. Stocks were 186 billion cubic feet less than last year at this time and 351 billion cubic feet below the five-year average of 3.710 trillion cubic feet for this time of year.
Natural gas prices are down almost 20% from a recent peak of $4.689 reached on November 21, as revised weather forecasts called for above-normal temperatures in the coming weeks.
Bearish speculators are betting on the mild weather to dampen demand for the heating fuel. The heating season from November through March is the peak demand period for U.S. gas consumption.
Elsewhere on the Nymex, crude oil for delivery in January tacked on 26 cents, or 0.43%, to trade at $61.20 a barrel, while heating oil for January delivery jumped 1.55% to trade at $2.086 per gallon.