Investing.com - U.S. natural gas futures declined on Thursday, reversing gains after data showed U.S. natural gas supplies in storage fell less than expected last week.
Natural gas for delivery in March on the New York Mercantile Exchange sank 2.3 cents, or 1.15%, to trade at $2.023 per million British thermal units by 15:35 GMT, or 10:35AM ET. Prices were at around $2.050 prior to the release of the supply data.
The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended February 5 fell by 70 billion cubic feet, compared to expectations for a decline of 82 billion.
That compared with draws of 152 billion cubic feet in the prior week, 160 billion cubic feet in the same week last year and a five-year average of around 162 billion.
Total U.S. natural gas storage stood at 2.864 trillion cubic feet, 20.0% higher than levels at this time a year ago and 19.0% above the five-year average for this time of year.
day earlier, futures fell 5.2 cents, or 2.48%, as forecasts calling for less cold weather over the next two weeks weighed. Forecasts originally called for cold winter weather during the period.
Bearish speculators are betting on the mild weather reducing winter demand for the heating fuel. 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 March lost 79 cents, or 2.86%, to trade at $26.66 a barrel, while heating oil for March delivery rose 1.32% to trade at $0.9878 per gallon.