Investing.com - U.S. natural gas futures were higher for the second straight day on Wednesday, as traders looked ahead to fresh weekly information on U.S. gas inventories to gauge the strength of demand for the fuel.
The U.S. Energy Information Administration's storage report slated for release on Thursday is expected to show a build of approximately 69 billion cubic feet for the week ending April 29.
That compares with a gain of 73 billion cubic feet in the prior week, an increase of 77 billion cubic feet in the same week a year earlier and a five-year average rise of around 64 billion cubic feet.
Total U.S. natural gas storage stood at 2.557 trillion cubic feet as of last week, according to the U.S. Energy Information Administration, 34% higher than levels at this time a year ago and 32.6% above the five-year average for this time of year.
Natural gas for delivery in June on the New York Mercantile Exchange rallied 6.2 cents, or 2.97%, to trade at $2.148 per million British thermal units by 13:37GMT, or 09:37AM ET. A day earlier, gas futures climbed 4.4 cents, or 2.15%.
Gains were limited as updated weather forecasting models pointed to mild spring temperatures for much of the country through mid-May.
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.
Natural gas futures are up almost 25% since hitting a 20-year low of $1.611 in early March. Despite recent gains, prices are still down nearly 3% 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 June jumped $1.04, or 2.38%, to trade at $44.69 a barrel, while heating oil for June delivery rose 1.99% to trade at $1.360 per gallon.