Investing.com - The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. fell by 19 billion cubic feet in the week ended April 6, compared to forecasts for a decline of 11 billion.
Thursday’s data compared with a draw of 29 billion cubic feet (bcf) in the preceding week and represented a decline of 725 billion from a year earlier and was also 375 bcf below the five-year average.
Total U.S. natural gas storage stood at 1.335 trillion cubic feet, 35.2% lower than levels at this time a year ago and also 21.9% below the five-year average for this time of year.
After the report, natural gas for delivery in May on the New York Mercantile Exchange rose 2.1 cents, or about 0.8%, to trade at $2.696 per million British thermal units by 10:33AM ET (14:33GMT).
Futures had been trading down 0.5 cents, or about 0.2%, at $2.670 prior to the release of the supply data.
The commodity accumulates losses of about 0.4% so far this week amid speculation the start of spring will bring warmer temperatures throughout the U.S. and cut into demand for the fuel.
Spring usually sees the weakest demand for natural gas in the U.S, as the absence of extreme temperatures curbs demand for heating and air conditioning.
Furthermore, record high domestic production levels have overshadowed the fact that stocks in storage are well below their seasonal averages for this time of year. Natural gas is down nearly 13% year-to-date.