Investing.com - Natural gas futures extended losses to hit a four-week low on Thursday, after data showed that U.S. natural gas supplies rose more than expected last week.
Natural gas for delivery in August hit a session low of $2.648 per million British thermal units on the New York Mercantile Exchange, the weakest level since June 8, before trading at $2.652 during U.S. morning hours, down 3.4 cents, or 1.25%. Prices were at around $2.689 prior to the release of the supply data.
Futures were likely to find support at $2.624, the low from June 8, and resistance at $2.756, the high from July 8.
The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended July 3 rose by 91 billion cubic feet, compared to expectations for an increase of 86 billion and following a build of 69 billion cubic feet in the preceding week.
Supplies rose by 94 billion cubic feet in the year-earlier period, while the five-year average change is an increase of 75 billion cubic feet.
Total U.S. natural gas storage stood at 2.668 trillion cubic feet as of last week. Stocks were 659 billion cubic feet higher than last year at this time and 45 billion cubic feet above the five-year average of 2.623 trillion cubic feet for this time of year.
A day earlier, natural gas prices fell 3.1 cents, or 1.14%, to close at $2.685 as forecasts for mild weather across the U.S. in the weeks ahead dampened demand expectations for the fuel.
Demand for natural gas tends to fluctuate in the summer based on hot weather and air conditioning use. Natural gas accounts for about a quarter of U.S. electricity generation.
Elsewhere on the Nymex, crude oil for delivery in August rose $1.02, or 1.97%, to trade at $52.67 a barrel, while heating oil for August delivery jumped 1.54% to trade at $1.741 per gallon.