Investing.com - Natural gas futures jumped up on Thursday after data revealed U.S. inventories dropped more last week than markets were expecting.
On the New York Mercantile Exchange, natural gas futures for delivery in December were up 0.92% at $4.411 per million British thermal units during U.S. trading. The commodity hit a session low of $4.253, and a high of $4.500.
The December contract settled up 2.99% on Wednesday to end at $4.371 per million British thermal units.
Natural gas futures were likely to find support at $4.113 per million British thermal units, Monday's low, and resistance at $4.508, Wednesday's high.
The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ending Nov. 14 fell by 17 billion cubic feet, more than expectations for a decline of 12 billion and compared to a gain of 40 billion in the previous week.
The five-year average change for the week is a decrease of 10 billion cubic feet.
Total U.S. natural gas storage stood at 3.594 trillion cubic feet. Stocks were 201 billion cubic feet less than last year at this time and 244 billion cubic feet below the five-year average of 3.838 trillion cubic feet for this time of year.
Elsewhere, updated weather forecasting models showed that temperatures were expected to be below normal across most of the contiguous U.S. through November 27.
The frigid weather outlook sent natural gas prices soaring on Wednesday amid expectations for households and business to crank up their heating and send thermal power plants burning more of the commodity to meet demand.
Mild weather should settle in afterwards, though fresh blasts of frigid air could follow and drive more demand for heating down the road into December.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in January were up 1.60% at $75.69 a barrel, while heating oil for December delivery were up 1.04% at $2.3835 per gallon.