Investing.com - Natural gas futures bounced higher Friday, despite a report from the U.S. Energy Information Administration indicating the fifth consecutive seasonal injection Thursday, on bottom fishing speculation
On the New York Mercantile Exchange, natural gas futures for delivery in May traded at USD1.920 per million British thermal units during U.S. morning trade, bouncing 0.66%.
The May contract traded at USD1.946 prior to the release of the U.S. Energy Information Administration report on Thursday
The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended April 13 rose by 25 billion cubic feet, broadly in line with expectations, after increasing by 8 billion cubic feet in the preceding week.
Inventories rose by 42 billion cubic feet in the same week a year earlier, while the five-year average change for the week is an increase of 26 billion cubic feet, according to U.S. Energy Department data.
Total U.S. natural gas storage stood at 2.512 trillion cubic feet as of last week. Stocks were 871 billion cubic feet higher than last year at this time and 919 billion cubic feet above the five-year average of 1.593 trillion cubic feet for this time of year.
The report showed that in the East Region, stocks were 432 billion cubic feet above the five-year average, following a net injection of 13 billion cubic feet.
Stocks in the Producing Region were 376 billion cubic feet above the five-year average of 673 billion cubic feet, after a net injection of 7 billion cubic feet.
Natural gas futures have been hitting a string of fresh 10-year lows over the past two weeks, as market sentiment has been dominated by ongoing concerns over waning demand and elevated U.S. storage and production levels.
Market participants expect the near-term downtrend in prices to continue, with some traders expecting prices to fall to USD1.890 in the short-term and eventually testing the all-time low of USD1.020 hit in 1992.
The U.S. gas market is entering the so-called shoulder season. Gas use typically hits a seasonal low with spring's mild temperatures, before warmer weather increases demand for gas-fired electricity generation to power air conditioning.
Natural gas prices have plunged almost 26% since the beginning of March and are down nearly 36% since the start of 2012.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in June gained 1.41%% to trade at USD104.17 a barrel.