Natural gas futures rise with all eyes on weekly storage data

Investing.com - U.S. natural gas prices rose for the second consecutive session on Wednesday, as market participants looked ahead to fresh weekly information on U.S. gas inventories to gauge the strength of demand for the fuel.

On the New York Mercantile Exchange, natural gas for delivery in June tacked on 2.7 cents, or 1.08%, to trade at $2.564 per million British thermal units during U.S. morning hours.

A day earlier, natural gas inched up 2.3 cents, or 0.91%, to close at $2.537. Futures were likely to find support at $2.481 per million British thermal units, the low from April 27, and resistance at $2.598, the high from April 24.

The U.S. Energy Information Administration's next storage report due on Thursday is expected to show a build of approximately 86 billion cubic feet for the week ending April 24.

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 1.629 trillion cubic feet as of last week, 83.0% above year-ago levels and 5.8% below the five-year average for this time of year.

Last spring, supplies were 55% below the five-year average, indicating producers have made up for most of last winter’s unusually strong demand.

Natural gas prices are down nearly 6% in April so far 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 shed 17 cents, or 0.3%, to trade at $56.89 a barrel, while heating oil for June delivery rose 0.11% to trade at $1.922 per gallon.