Investing.com - Natural gas futures rose to the highest levels of the session 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 December tacked on 4.0 cents, or 0.9%, to trade at $4.411 per million British thermal units during U.S. morning hours. Prices were at $4.400 prior to the release of the supply data.
A day earlier, natural gas prices surged 12.7 cents, or 2.99%, to settle at $4.371 per million British thermal units, as investors bet that chilly weather across the U.S. will boost early-winter demand for the heating fuel.
Futures were likely to find support at $4.194 per million British thermal units, the low from November 19, and resistance at $4.508, the high from November 19.
The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended November 14 fell by 17 billion cubic feet, more than expectations for a decline of 12 billion and compared to a gain of 40 billion in the previous week.
The five-year average change for the week is a decrease of 10 billion cubic feet.
Total U.S. natural gas storage stood at 3.594 trillion cubic feet. Stocks were 201 billion cubic feet less than last year at this time and 244 billion cubic feet below the five-year average of 3.838 trillion cubic feet for this time of year.
Meanwhile, updated weather forecasting models showed that temperatures were expected to be below normal across most of the contiguous U.S. through November 27.
The frigid weather outlook sent natural gas prices soaring on Wednesday amid expectations for households and business to crank up their heating and send thermal power plants to burn more of the commodity to meet demand.
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 increased 67 cents, or 0.9%, to trade at $75.17 a barrel, while heating oil for December delivery rallied 1.07% to trade at $2.384 per gallon.