Investing.com - U.S. natural gas futures inched up on Friday, as market participants awaited the arrival of the first major snowstorm of the season on the U.S. East Coast expected over the weekend.
Gains were limited amid concerns that power outages in major eastern U.S. cities could reduce demand for the commodity as a power-generation fuel.
On the New York Mercantile Exchange, natural gas for delivery in March tacked on 0.2 cents, or 0.09%, to close the week at $2.141 per million British thermal units.
For the week, natural gas futures rose 8.4 cents, or 1.86%, as forecasts called for seasonably cold weather through the end of January.
The heating season from November through March is the peak demand period for U.S. gas consumption.
On Thursday, natural gas prices inched up 1.6 cents, or 0.75%, even after data showed U.S. natural gas supplies in storage fell less than expected last week.
The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. fell by 178 billion cubic feet, below expectations for a decline of 184 billion.
That compared with a drawdown of 168 billion cubic feet in the prior week, while the five-year average change for the week is a withdrawal of 191 billion cubic feet.
Total U.S. natural gas storage stood at 3.297 trillion cubic feet, 19.1% higher than levels at this time a year ago and 14.3% above the five-year average for this time of year.
The EIA's next storage report slated for release on Thursday, January 28 is expected to show a withdrawal of approximately 206 billion cubic feet for the week ending January 22.
That compared with a decline of 94 billion cubic feet in the same week last year, while the five-year average change for the week is a drawdown of 174 billion cubic feet.
Elsewhere on the Nymex, crude oil for March delivery settled at $32.19 a barrel by close of trade on Friday, up $2.99, or 9.42%, on the week, while heating oil for March delivery jumped 6.57% on the week to settle at $0.9957 per gallon.