Investing.com - Natural gas futures came off their best levels of the session on Thursday, after data showed that domestic supplies in storage fell less than expected last week.
Front-month U.S. natural gas futures rose 4.7 cents, or around 1.7%, to $2.744 per million British thermal units (btu) by 10:34AM ET (1434GMT). Futures were at $2.757 prior to the release of the supply data.
The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. fell by 63 billion cubic feet (bcf) in the week ended March 23, disappointing forecasts for a withdrawal of 75 bcf.
That compared with a decline of 86 bcf in the preceding week, a fall of 43 bcf a year earlier and a five-year average drop of 46 bcf.
Total natural gas in storage currently stands at 1.383 trillion cubic feet (tcf), according to the U.S. Energy Information Administration.
That figure is 672 bcf, or around 32.7%, lower than levels at this time a year ago, and 346 bcf, or roughly 20.0%, below the five-year average for this time of year.
Meanwhile, updated weather forecasting models showed that cooler than normal temperatures will spread across the northern United States during the first week of April.
However, market experts warned that futures are likely to remain vulnerable in the near-term as the coldest part of the winter has effectively passed.
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.