Investing.com - Natural gas futures rallied sharply 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 2.28%, or 8.6 cents, to trade at $3.918 per million British thermal units during U.S. morning hours. Futures traded at $3.872 prior to the release of the supply data.
A day earlier, natural gas futures plunged 3.6%, or 14.3 cents, to settle at $3.831 as investors locked in gains from a recent rally.
Futures were likely to find support at $3.761 per million British thermal units, the low from August 4 and resistance at $3.986, the high from August 13.
The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended August 8 rose by 78 billion cubic feet, below expectations for an increase of 83 billion cubic feet.
Inventories rose by 70 billion cubic feet in the same week a year earlier, while the five-year average change is a build of 45 billion cubic feet.
Injections of gas into storage have surpassed the five-year average for 17 consecutive weeks, alleviating concerns over tightening supplies.
Total U.S. natural gas storage stood at 2.467 trillion cubic feet. Stocks were 530 billion cubic feet less than last year at this time and 575 billion cubic feet below the five-year average of 3.042 trillion cubic feet for this time of year.
Natural gas prices have been well-supported in recent sessions as weather patterns called for warmer summer temperatures across much of the U.S. later this week.
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 fell 1.28%, or $1.25, to trade at $96.34 a barrel, while heating oil for September delivery dropped 1.85% to trade at $2.848 per gallon.