Investing.com - U.S. natural gas prices - on Wednesday, after data showed that U.S. gas inventories rose more than expected last week, sparking fears over a drop in demand for fuel.
On the New York Mercantile Exchange, natural gas for delivery in May hit $2.548 during U.S. morning hours, down 4.9 cents, or 1.86%.
A day earlier, natural gas prices jumped 3.1 cents, or 1.20%, to close at $2.606 amid speculation utilities and power generators will switch from coal to natural gas in wake of the recent slide in prices.
Futures were likely to find support at $2.491 per million British thermal units, the low from April 15, and resistance at $2.625, the high from April 15.
The U.S. Energy Information Administration said that natural gas inventories rose by 90 billion cubic feet in the week ending April 17, the most on record and exceeding expectations for an increase of 88 billion cubic feet.
Total U.S. natural gas storage stood at 1.629 trillion cubic feet last week.
U.S. natural gas prices have been under heavy selling 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 rallied $1.59, or 2.83%, to trade at $57.75 a barrel, while heating oil for May delivery advanced 2.79% to trade at $1.923 per gallon.