Investing.com - U.S. natural gas prices declined on Wednesday, as market participants looked ahead to fresh weekly information on U.S. gas inventories amid expectations for a modest withdrawal.
On the New York Mercantile Exchange, natural gas for delivery in May shed 2.1 cents, or 0.81%, to trade at $2.619 per million British thermal units during U.S. morning hours.
A day earlier, natural gas prices dipped 0.4 cents, or 0.15% to end at $2.640. Futures were likely to find support at $2.595, the low from February 9, and resistance at $2.697, the high from March 27.
The U.S. Energy Information Administration's next storage report slated for release on Thursday is expected to show a withdrawal of approximately 9 billion cubic feet for the week ending March 27. Supplies fell by 71 billion cubic feet in the same week last year, while the five-year average change is a decline of 22 billion cubic feet.
U.S. stockpiles rose by 12 billion cubic feet in the week ended March 20, the first increase since the heating season began in November.
Total U.S. natural gas storage stood at 1.479 trillion cubic feet as of last week, 63.6% above year-ago levels and 11.6% below the five-year average for this time of year.
Last spring, supplies were 55% below the five-year average, indicating producers have made up for most of last winter’s unusually strong demand.
Meanwhile, updated weather forecasting models showed that colder temperatures will impact the U.S. east coast and Midwest from April 4 to April 6, while the rest of the country will enjoy seasonal or higher temperatures.
Prices are likely to remain vulnerable in the near-term as the coldest part of the winter has effectively passed and below-normal temperatures in March and April mean less than they do in January and February.
Spring usually sees the weakest demand for natural gas in the U.S, as the absence of extreme temperatures curbs demand for heating and air conditioning.
The heating season from November through March is the peak demand period for U.S. gas consumption.
Approximately 49% of U.S. households use natural gas for heating, according to the Energy Department.
Elsewhere on the Nymex, crude oil for delivery in May inched up 17 cents, or 0.36%, to trade at $47.77 a barrel, while heating oil for May delivery dipped 0.06% to trade at $1.707 per gallon.