Investing.com - U.S. natural gas futures extended losses in North America trade on Thursday, after data showed that natural gas supplies in storage in the U.S. rose more than expected last week.
Natural gas for delivery in June on the New York Mercantile Exchange dropped 4.4 cents, or 2.02%, to trade at $2.137 per million British thermal units by 14:34GMT, or 10:34AM ET. Prices were at around $2.172 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 May 20 rose by 71 billion cubic feet, compared to expectations for a gain of 68 billion.
That compares with a gain of 73 billion cubic feet in the prior week, an increase of 112 billion cubic feet in the same week a year earlier and a five-year average rise of around 97 billion cubic feet.
Total U.S. natural gas storage stood at 2.825 trillion cubic feet, 26.8% higher than levels at this time a year ago and 27.2% above the five-year average for this time of year.
Meanwhile, the latest U.S. weather model called for mild temperatures over the next two weeks, which should reduce heating demand during that time.
Natural gas prices have closely tracked weather forecasts in recent weeks, as traders try to gauge the impact of shifting outlooks on spring 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.
Unless intense summer heat boosts demand from power plants, stockpiles will test physical storage limits of 4.3 trillion cubic feet at the end of October.
Natural gas prices are down nearly 15% 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 July tacked on 2 cents, or 0.04%, to trade at $49.58 a barrel, while heating oil for June delivery shed 1.05% to trade at $1.496 per gallon.