Investing.com - Natural gas futures rallied sharply on Thursday, after data showed that U.S. natural gas supplies fell more-than-expected last week.
On the New York Mercantile Exchange, natural gas futures for delivery in April rallied to a session high of $4.661 per million British thermal units.
Nymex gas prices last traded at $4.639 per million British thermal units during U.S. morning hours, up 2.55%, or 11.6 cents. Futures traded at $4.542 prior to the release of the supply data.
The April contract tumbled 3.09%, or 14.4 cents, on Wednesday to settle at $4.523 per million British thermal units.
Prices were likely to find support at $4.441 per million British thermal units, the low from February 27 and resistance at $4.736, the high from March 3.
The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended February 28 fell by 152 billion cubic feet, compared to expectations for a decline of 138 billion cubic feet.
Supplies fell by 149 billion cubic feet in the same week a year earlier, while the five-year average is a decline of 105 billion.
Total U.S. natural gas storage stood at 1.1968 trillion cubic feet, the lowest for this time of year since 2004.
Stocks were 908 billion cubic feet less than last year at this time and 758 billion cubic feet below the five-year average of 1.954 trillion cubic feet for this time of year.
The report showed that in the East Region, stocks were 370 billion cubic feet below the five-year average, following net withdrawals of 82 billion cubic feet.
Stocks in the Producing Region were 273 billion cubic feet below the five-year average of 754 billion cubic feet after a net withdrawal of 43 billion cubic feet.
Market analysts have warned that prices remain vulnerable in the near-term as the coldest part of the winter has effectively passed and below-normal temperatures in March mean less than they do in January and February.
Natural gas prices rallied to a more than five-year high of $6.493 per million British thermal units on February 20 as frigid winter temperatures in the U.S. led households to burn a higher than normal amount of the fuel in furnaces to heat their homes.
The heating season from November through March is the peak demand period for U.S. gas consumption. Approximately 52% of U.S. households use natural gas for heating, according to the Energy Department.
Elsewhere on the Nymex, light sweet crude oil futures for delivery in April shed 0.05% to trade at $101.40 a barrel, while heating oil for April delivery slumped 0.45% to trade at $2.978 per gallon.