Investing.com - U.S. natural gas futures declined again on Thursday, falling to a near six-week low after data showed that natural gas supplies in storage in the U.S. fell less than expected last week.
Natural gas for February delivery on the New York Mercantile Exchange hit a session low of $3.175 per million British thermal units, a level not seen since November 28.
It was last at $3.192 by 10:35AM ET (15:35GMT), down 7.5 cents, or 2.3%. Futures were at around $3.287 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. declined by 49 billion cubic feet in the week ended December 30, below market expectations for a drop of 82 billion cubic feet.
That compared with a withdrawal of 237 billion cubic feet in the preceding week, 131 billion a year earlier and a five-year average drop of 107 billion cubic feet.
Total natural gas in storage currently stands at 3.311 trillion cubic feet, according to the U.S. Energy Information Administration, 9.9% lower than levels at this time a year ago and less than 1% below the five-year average for this time of year.
Futures have lost more than 13% so far this week as forecasts of mild weather replaced predictions of severe cold.
According to updated weather forecasting models, above normal temperatures are expected throughout large portions of the southern and eastern U.S. through January 16, dampening demand for the heating fuel.
About half of U.S. homes use natural gas for heating.
Natural-gas markets have been volatile in recent weeks, changing course rapidly in response to shifting outlooks in short-term weather patterns.
Prices rallied to two-year highs at the end of December amid weather forecasts that predicted extreme cold would hit most of the country in January. But the arctic blast is now expected to be briefer than many anticipated, with milder temperatures taking hold in mid-January.