Investing.com - U.S. natural gas futures turned higher in North American trade on Thursday, reversing losses after data showed U.S. natural gas supplies in storage rose less than expected last week.
Natural gas for delivery in April on the New York Mercantile Exchange tacked on 0.6 cents, or 0.33%, to trade at $1.800 per million British thermal units by 14:35GMT, or 10:35AM ET. Prices were at around $1.785 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 March 18 rose by 15 billion cubic feet, below expectations for an increase of 20 billion.
That compares with draws of 1 billion cubic feet in the prior week and a five-year average of around 24 billion for this time of year.
Total U.S. natural gas storage stood at 2.493 trillion cubic feet, 40.8% higher than levels at this time a year ago and 34.0% above the five-year average for this time of year.
Some market experts worry that stockpiles at the end of March will hit at an all-time high of around 2.5 trillion cubic feet, topping the end-of-withdrawal-season high of 2.369 set in 2012.
On Wednesday, natural gas plunged 6.9 cents, or 3.7%, as updated weather forecasting models pointed to spring-like temperatures across most parts of the U.S. in the weeks ahead.
Natural gas prices have closely tracked weather forecasts in recent weeks, as traders try to gauge the impact of shifting outlooks on late-winter heating demand.
Gas use typically hits a seasonal low with spring's mild temperatures, before warmer weather increases demand for gas-fired electricity generation to power air conditioning.
Natural gas futures are down nearly 20% so far this year as weak winter heating demand, near-record production and record-high storage levels dragged down prices.
Elsewhere on the Nymex, crude oil for delivery in May slumped $1.09, or 2.74%, to trade at $38.70 a barrel, while heating oil for April delivery dropped 1.1% to trade at $1.190 per gallon.