Investing.com - U.S. natural gas futures fell sharply on Thursday morning, after data showed that natural gas supplies in storage in the U.S. rose much more than the five-year average for this time of year last week.
Natural gas for delivery in December on the New York Mercantile Exchange tumbled 4.6 cents, or 1.7%, to $2.716 per million British thermal units by 10:33AM ET (15:33GMT). Futures were at around $2.740 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. rose by 30 billion cubic feet in the week ended November 11, just below market expectations for an increase of 31 billion cubic feet.
That compared with a gain of 54 billion cubic feet in the preceding week, 15 billion a year earlier and a five-year average build of 3 billion cubic feet.
Total U.S. natural gas storage stood at 4.047 trillion cubic feet, 1.3% higher than levels at this time a year ago and 5.3% above the five-year average for this time of year.
Market analysts have warned that supplies in storage could peak at around 4.050 trillion cubic feet by the end of November unless subfreezing winter temperatures result in higher demand.
Updated forecasting models showed a weather system pushing into the western U.S. later this week, which will then track toward the eastern U.S. next weekend, bringing rain, snow, and cooler than normal temperatures along with it.
Natural gas prices typically rise ahead of the winter as colder weather sparks indoor-heating demand.