Investing.com - Natural gas futures were higher for the second straight session on Wednesday, extending gains from the previous day as traders looked ahead to fresh weekly information on U.S. gas inventories to gauge the strength of demand for the fuel.
The U.S. Energy Information Administration's storage report slated for release on Thursday is expected to show a build in a range between 55 billion to 65 billion cubic feet for the week ending July 8.
That compared with builds of 39 billion cubic feet in the prior week, 98 billion a year earlier and a five-year average of 77 billion cubic feet.
Total U.S. natural gas storage stood at 3.179 trillion cubic feet, 16.9% higher than levels at this time a year ago and 18.8% above the five-year average for this time of year.
Unless intense summer heat boosts demand from power plants, stockpiles will test physical storage limits of 4.3 trillion cubic feet at the end of October.
Natural gas for delivery in August on the New York Mercantile Exchange inched up 2.9 cents, or 1.06%, to trade at $2.763 per million British thermal units by 13:35GMT, or 9:35AM ET. A day earlier, natural gas futures tacked on 3.2 cents, or 1.18%.
Futures are up nearly 45% since late May as expectations have grown that hot summer weather will lead to heavy demand.
Gas use typically hits a seasonal low with spring's mild temperatures, before warmer weather increases demand for gas-fired electricity generation to power air conditioning.