Investing.com - U.S. natural gas futures fell to a fresh two-month low in North America trade on Thursday, after data showed U.S. natural gas supplies in storage fell much less than expected last week.
Natural gas for delivery in April on the New York Mercantile Exchange sank 7.8 cents, or 4.25%, to trade at $1.756 per million British thermal units by 15:35GMT, or 10:35AM ET after hitting a daily low of $1.752, a level not seen since December 18. Prices were at around $1.790 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 12 declined by 117 billion cubic feet, much less than expectations for a decline of 139 billion.
That compares with draws of 158 billion cubic feet in the prior week, 220 billion cubic feet in the same week last year and a five-year average of around 137 billion.
Total U.S. natural gas storage stood at 2.584 trillion cubic feet, 23.8% higher than levels at this time a year ago and 22.4% above the five-year average for this time of year.
Some market experts worry there may be too much gas left in storage at the end of March when utilities traditionally start injecting the fuel back into storage for the next winter.
Meanwhile, updated weather forecasts called for mild weather in the U.S. northeast through the first week of March. The heating season from November through March is the peak demand period for U.S. gas consumption.
Natural gas futures are down nearly 23% so far this year as a warmer-than-normal winter due to the El Niño weather pattern has limited the amount of heating days and reduced demand for the fuel.
Elsewhere on the Nymex, crude oil for delivery in April shed 62 cents, or 1.93%, to trade at $31.53 a barrel, while heating oil for March delivery slumped 1.19% to trade at $1.046 per gallon.