Natural gas futures extend losses after storage data

Investing.com - Natural gas futures extended losses on Thursday, despite data showing that U.S. natural gas supplies rose less than expected last week.

On the New York Mercantile Exchange, natural gas for delivery in July shed 2.8 cents, or 1.0%, to trade at $2.827 per million British thermal units during U.S. morning hours. Prices were at around $2.842 prior to the release of the supply data.

A day earlier, natural gas prices rose to $2.955, the most since May 22, before turning lower to close at $2.855, down 3.9 cents, or 1.35%.

Futures were likely to find support at $2.764 per million British thermal units, the low from June 15, and resistance at $2.955, the high from June 17.

The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended June 12 rose by 89 billion cubic feet, compared to expectations for an increase of 93 billion and following a build of 111 billion cubic feet in the preceding week.

Supplies rose by 112 billion cubic feet in the same week last year, while the five-year average change is an increase of 87 billion cubic feet.

Total U.S. natural gas storage stood at 2.433 trillion cubic feet as of last week. Stocks were 730 billion cubic feet higher than last year at this time and 46 billion cubic feet above the five-year average of 2.387 trillion cubic feet for this time of year.

Meanwhile, updated weather forecasting models pointed to warmer-than-average temperatures in the eastern third of the U.S. through June 24, boosting near-term demand expectations for the heating fuel.

Demand for natural gas tends to fluctuate in the summer based on hot weather and air conditioning use.

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 August tacked on 22 cents, or 0.36%, to trade at $60.55 a barrel, while heating oil for July delivery dipped 0.05% to trade at $1.908 per gallon.