Investing.com - U.S. natural gas futures held on to losses in North America trade on Thursday, after data showed that natural gas supplies in storage in the U.S. rose more than feared last week.
Natural gas for delivery in June on the New York Mercantile Exchange shed 2.2 cents, or 1.03%, to trade at $2.119 per million British thermal units by 13:35GMT, or 09:35AM ET. Prices were at around $2.115 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 April 29 rose by 68 billion cubic feet, compared to expectations for a gain of 64 billion.
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 2.625 trillion cubic feet, 32.8% higher than levels at this time a year ago and 31.9% above the five-year average for this time of year.
A day earlier, gas futures climbed 5.5 cents, or 2.64%, amid speculation hotter weather will increase spring cooling demand.
Updated weather forecasting models showed that temperatures may be warmer than normal on the U.S. East Coast from May 9 to May 13 after a cold spell this week.
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 amid indications the flood of production from shale formations is beginning to subside.
Despite recent gains, natural gas prices are still down nearly 5% so far this year as weak winter heating demand and record-high storage levels dragged down prices.
Elsewhere on the Nymex, crude oil for delivery in June jumped $1.56, or 3.56%, to trade at $45.34 a barrel, while heating oil for June delivery rose 2.54% to trade at $1.362 per gallon.