Investing.com - U.S. natural gas futures reversed losses on Thursday morning to bounce off a more than one-week low after data showed that natural gas supplies in storage in the U.S. fell more than expected last week.
Natural gas for February delivery on the New York Mercantile Exchange tacked on 2.7 cents, or 1%, to $3.333 per million British thermal units by 10:35AM ET (15:35GMT).
Futures were at around $3.298 prior to the release of the supply data after falling to a session low of $3.257 earlier, a level not seen since January 11.
The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. declined by 243 billion cubic feet in the week ended January 13, exceeding market expectations for a drop of 231 billion cubic feet.
That compared with a withdrawal of 151 billion cubic feet in the preceding week, 178 billion a year earlier and a five-year average drop of 170 billion cubic feet.
Total natural gas in storage currently stands at 2.917 trillion cubic feet, according to the U.S. Energy Information Administration, 12.9% lower than levels at this time a year ago and around 2.6% below the five-year average for this time of year.
Meanwhile, weather forecasts for the end of January turned warmer, which should dampen demand for the heating fuel.
Weather models initially predicted colder temperatures throughout most parts of the U.S. during the period.
Natural gas markets have been volatile in recent weeks, changing course rapidly in response to shifting outlooks in short-term weather patterns.
Prices typically rise during the winter as colder weather sparks indoor-heating demand. About half of U.S. homes use natural gas for heating.