Investing.com - Natural gas futures rallied off an eight-month low on Thursday, after data showed that U.S. natural gas supplies rose less than expected last week.
On the New York Mercantile Exchange, natural gas for delivery in August rallied 1.73%, or 6.5 cents, to trade at $3.827 per million British thermal units during U.S. morning hours. Futures traded at $3.823 prior to the release of the supply data
Natural gas prices fell to a session low of $3.744 earlier, the weakest level since November 26. Futures were likely to find support at $3.741 per million British thermal units, the low from November 26 and resistance at $3.866, the high from July 22.
The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended July 18 rose by 90 billion cubic feet, below expectations for an increase of 96 billion cubic feet.
The five-year average change for the week is an increase of 46 billion cubic feet.
Total U.S. natural gas storage stood at 2.219 trillion cubic feet. Stocks were 561 billion cubic feet less than last year at this time and 683 billion cubic feet below the five-year average of 2.902 trillion cubic feet for this time of year.
Natural gas prices have been under heavy selling pressure in recent sessions after updated weather-forecasting models called for cooler temperatures across most parts of the heavily-populated Midwest and Northeast regions over the next ten days.
Demand for natural gas tends to fluctuate in the summer based on hot weather and air conditioning use.
Elsewhere on the Nymex, U.S. crude oil for delivery in September dipped 0.54%, or 56 cents, to trade at $102.56 a barrel, while heating oil for August delivery shed 0.24% to trade at $2.868 per gallon.