Investing.com - Natural gas futures extended losses on Thursday, after data showed that U.S. natural gas supplies rose more than expected last week.
On the New York Mercantile Exchange, natural gas for delivery in May tumbled 5.7 cents, or 2.16%, to trade at $2.554 per million British thermal units during U.S. morning hours. Prices were at around $2.601 prior to the release of the supply data.
Futures were likely to find support at $2.475 per million British thermal units, the low from April 13, and resistance at $2.646, the high from April 9.
The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended April 10 rose by 63 billion cubic feet, above expectations for an increase of 53 billion and following a build of 15 billion cubic feet in the preceding week.
Supplies rose by 22 billion cubic feet in the same week last year, while the five-year average change is an increase of 35 billion cubic feet.
Total U.S. natural gas storage stood at 1.539 trillion cubic feet as of last week. Stocks were 692 billion cubic feet higher than last year at this time and 145 billion cubic feet below the five-year average of 1.684 trillion cubic feet for this time of year.
A day earlier, natural gas prices surged 8.0 cents, or 3.16%, to close at $2.610 amid speculation utilities and power generators will switch from coal to natural gas in wake of the recent slide in prices.
Natural gas prices have been under heavy selling pressure in recent weeks amid speculation the end of the winter heating season will bring warmer temperatures throughout the U.S. and cut into demand for the fuel.
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 shed 84 cents, or 1.49%, to trade at $55.55 a barrel, while heating oil for May delivery dipped 0.25% to trade at $1.884 per gallon.