Investing.com - Natural gas futures rose on Friday after bargain hunters snapped up nicely-priced positions in the commodity after bearish supply data sent prices falling to levels ripe for bottom fishing.
On the New York Mercantile Exchange, natural gas futures for delivery in April traded at $4.414 per million British thermal units during U.S. trading, up 0.70%. The commodity hit session high of $4.425 and a low of $4.342.
The April contract settled down 2.38% on Thursday to end at $4.383 per million British thermal units.
Natural gas futures were likely to find support at $4.342 per million British thermal units, the earlier low, and resistance at $4.732, Monday's high.
The U.S. Energy Information Administration said in its weekly report on Thursday that natural gas storage in the U.S. in the week ended March 7 fell by 195 billion cubic feet, just shy of expectations for a decline of 196 billion cubic feet.
Supplies fell by 145 billion cubic feet in the same week a year earlier, while the five-year average is a decline of 95 billion.
The numbers sent prices dropping, though by Friday trading, investors viewed the commodity as oversold.
Gains were limited, however, as seasonably mild temperatures were expected to settle in the eastern U.S. in the coming days to mark spring's arrival.
Updated weather-forecasting models called for above-normal temperatures across many densely populated areas in the U.S. in the next three to five days.
Spring and fall see the weakest demand for natural gas in the U.S, as the absence of extreme temperatures curbs the need for heating and air conditioning.
The heating season from November through March is the peak demand period for U.S. gas consumption. Approximately 52% of U.S. households use natural gas for heating, according to the Energy Department.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in April were up 0.46% and trading at $98.65 a barrel, while heating oil for April delivery were up 0.91% and trading at $2.9461 per gallon.