Investing.com - The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. increased by 46 billion cubic feet in the week ended July 13, compared to forecasts for a build of 58 billion.
Thursday’s data compared with a gain of 51 billion cubic feet (bcf) in the preceding week and represented a decline of 710 billion from a year earlier and was also 535 bcf below the five-year average.
Total U.S. natural gas storage stood at 2.249 trillion cubic feet, 24.0% lower than levels at this time a year ago and also 19.2% below the five-year average for this time of year.
After the report, natural gas for delivery in August on the New York Mercantile Exchange jumped 3.1 cents, or about 1.1%, to trade at $2.752 per million British thermal units by 10:33AM ET (14:33GMT).
Futures had been falling 0.5 cents, or about 0.2%, at $2.716 prior to the release of the supply data.
Prices have been under pressure this week as traders focus on record production levels and recent weather forecasts. The National Oceanic Atmospheric Administration predicted cooler than normal weather to cover most of the U.S. for the next one-to-two weeks.
Demand for natural gas tends to rise in the summer months as warmer temperatures increase the need for gas-fired electricity to power air conditioning.
Adding to the pressure are recent concerns over trade tensions and their possible negative impact on global growth. If the global economy falters, energy consumption could be diminished.