Investing.com - Natural gas futures rallied on Thursday after official data revealed U.S. inventories rose less than expected last week.
On the New York Mercantile Exchange, natural gas futures for delivery in September traded at $3.885per million British thermal units during U.S. trading, up 2.60%. The commodity hit a session low of $3.761. and a high of $3.889.
The September contract settled down 0.99% on Wednesday to end at $3.786 per million British thermal units.
Natural gas futures were likely to find support at $3.725 per million British thermal units, Monday's low, and resistance at $3.892, the high from July 24.
The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended July 25 rose by 88 billion cubic feet, below expectations for an increase of 93 billion cubic feet.
The five-year average change for the week is an increase of 42 billion cubic feet.
Total U.S. natural gas storage stood at 2.307 trillion cubic feet. Stocks were 530 billion cubic feet less than last year at this time and 641 billion cubic feet below the five-year average of 2.948 trillion cubic feet for this time of year.
Natural gas prices have been under heavy selling pressure in recent sessions after updated weather-forecasting models called for below-normal temperatures across much of the U.S. over the coming days.
Below-normal temperatures in the U.S. summer often prompt households to throttle back on their air conditioning.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in September were down 1.62% at $98.65 a barrel, while heating oil for September delivery were down 0.11% at $2.8936 per gallon.