Investing.com - U.S. natural gas futures bounced off 17-year lows in North American trade on Thursday, after data showed U.S. natural gas supplies in storage fell more than expected last week.
Natural gas for delivery in April on the New York Mercantile Exchange fell to an intraday low of $1.633 per million British thermal units, a level not seen since February 1999, before recovering to trade at $1.667 by 15:35GMT, or 10:35AM ET, down 1.1 cents, or 0.66%. Prices were at around $1.648 prior to the release of the supply data.
The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended February 26 declined by 48 billion cubic feet, more than expectations for a decline of 41 billion.
That compares with draws of 117 billion cubic feet in the prior week, 198 billion cubic feet in the same week last year and a five-year average of around 138 billion.
Total U.S. natural gas storage stood at 2.536 trillion cubic feet, 31.3% higher than levels at this time a year ago and 26.3% above the five-year average for this time of year.
Some market experts worry there may be too much gas left in storage at the end of March when utilities traditionally start injecting the fuel back into storage for the next winter.
A day earlier, natural gas futures sank 6.4 cents, or 3.67%, as weather models kept pointing to higher-than-normal temperatures during the first ten days of March, dampening late-winter heating demand.
The heating season from November through March is the peak demand period for U.S. gas consumption.
Natural gas futures are down nearly 31% so far this year as a warmer-than-normal winter due to the El Niño weather pattern has limited the amount of heating days and reduced demand for the fuel.
Elsewhere on the Nymex, crude oil for delivery in April shed 3 cents, or 0.11%, to trade at $34.63 a barrel, while heating oil for April delivery inched up 0.36% to trade at $1.110 per gallon.