Investing.com - U.S. natural gas futures struggled near the lowest level in two months in North America trade on Thursday, despite data showing that U.S. natural gas supplies in storage fell more than expected last week.
Natural gas for delivery in March on the New York Mercantile Exchange slumped 5.6 cents, or 2.88%, to trade at $1.886 per million British thermal units by 15:35 GMT, or 10:35AM ET, after falling to an intraday low of $1.867, a level not seen since December 18. Prices were at around $1.880 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 fell by 158 billion cubic feet, more than expectations for a decline of 154 billion.
That compares with draws of 70 billion cubic feet in the prior week, 110 billion cubic feet in the same week last year and a five-year average of around 176 billion.
Total U.S. natural gas storage stood at 2.706 trillion cubic feet, 19.7% higher than levels at this time a year ago and 20.5% 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 forecasting models called for higher-than-normal temperatures later in February, dampening late-winter heating demand expectations.
The heating season from November through March is the peak demand period for U.S. gas consumption.
Natural gas futures are down nearly 19% 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 March tacked on 98 cents, or 3.2%, to trade at $31.64 a barrel, while heating oil for March delivery rose 1.52% to trade at $1.104 per gallon.