Investing.com - Natural gas futures reversed losses on Thursday, hitting the highest levels of the session, 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 June hit a session low of $2.559 per million British thermal units, before turning higher to trade at $2.697 during U.S. morning hours, up 9.1 cents, or 3.49%. Prices were at around $2.560 prior to the release of the supply data.
A day earlier, natural gas jumped 6.9 cents, or 2.72%, to close at $2.606. Futures were likely to find support at $2.481 per million British thermal units, the low from April 27, and resistance at $2.653, the high from April 23.
The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended April 24 rose by 81 billion cubic feet, below expectations for an increase of 85 billion and following a build of 90 billion cubic feet in the preceding week.
Supplies rose by 77 billion cubic feet in the same week last year, while the five-year average change is an increase of 55 billion cubic feet.
Total U.S. natural gas storage stood at 1.710 trillion cubic feet as of last week. Stocks were 741 billion cubic feet higher than last year at this time and 75 billion cubic feet below the five-year average of 1.785 trillion cubic feet for this time of year.
Natural gas prices have been under pressure in recent weeks amid speculation the end of the winter heating season 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.
The heating season from November through March is the peak demand period for U.S. gas consumption. Approximately 49% of U.S. households use natural gas for heating, according to the Energy Department.
Elsewhere on the Nymex, crude oil for delivery in June tacked on 14 cents, or 0.24%, to trade at $58.72 a barrel, while heating oil for June delivery rose 0.2% to trade at $1.955 per gallon.