Investing.com - Natural gas futures erased losses during U.S. morning hours on Thursday, re-approaching a 20-month high after a report from the U.S. Energy Information Administration showed natural gas supplies fell more-than-expected last week.
On the New York Mercantile Exchange, natural gas futures for delivery in May traded at USD4.136 per million British thermal units during U.S. morning trade, up 1.2% on the day.
Prices fell by as much as 1% earlier in the day to hit a session low of USD4.048 per million British thermal units.
The May contract traded at USD4.054 prior to the release of the U.S. Energy Information Administration report.
The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended April 5 fell by 14 billion cubic feet, compared to expectations for a drop of 13 billion cubic feet.
Inventories increased by 11 billion cubic feet in the same week a year earlier, while the five-year average change for the week is a build of 15 billion cubic feet.
Total U.S. natural gas storage stood at 1.673 trillion cubic feet as of last week. Stocks were 804 billion cubic feet less than last year at this time and 66 billion cubic feet below the five-year average of 1.739 trillion cubic feet for this time of year.
The report showed that in the East Region, stocks were 92 billion cubic feet below the five-year average, following net withdrawals of 16 billion cubic feet.
Stocks in the Producing Region were 46 billion cubic feet below the five-year average of 736 billion cubic feet after a net withdrawal of 5 billion cubic feet.
Natural gas prices were lower earlier despite weather forecasts pointing to below-normal temperatures in the key Northeast market in the next six-to-10-days.
Nymex gas prices have risen sharply in recent weeks, gaining almost 25% since mid-February, boosted by calls for colder temperatures in major consuming regions across the U.S. that helped tighten the market.
Still, some analysts have warned that further gains may be limited with spring's low-demand shoulder season looming.
The heating season from November through March is the peak demand period for U.S. gas consumption. Nearly 50% of all U.S. households use gas for heating.
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.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in May fell 0.5% to trade at USD94.17 a barrel, while heating oil for May delivery dropped 0.8% to trade at USD2.923 per gallon.
On the New York Mercantile Exchange, natural gas futures for delivery in May traded at USD4.136 per million British thermal units during U.S. morning trade, up 1.2% on the day.
Prices fell by as much as 1% earlier in the day to hit a session low of USD4.048 per million British thermal units.
The May contract traded at USD4.054 prior to the release of the U.S. Energy Information Administration report.
The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended April 5 fell by 14 billion cubic feet, compared to expectations for a drop of 13 billion cubic feet.
Inventories increased by 11 billion cubic feet in the same week a year earlier, while the five-year average change for the week is a build of 15 billion cubic feet.
Total U.S. natural gas storage stood at 1.673 trillion cubic feet as of last week. Stocks were 804 billion cubic feet less than last year at this time and 66 billion cubic feet below the five-year average of 1.739 trillion cubic feet for this time of year.
The report showed that in the East Region, stocks were 92 billion cubic feet below the five-year average, following net withdrawals of 16 billion cubic feet.
Stocks in the Producing Region were 46 billion cubic feet below the five-year average of 736 billion cubic feet after a net withdrawal of 5 billion cubic feet.
Natural gas prices were lower earlier despite weather forecasts pointing to below-normal temperatures in the key Northeast market in the next six-to-10-days.
Nymex gas prices have risen sharply in recent weeks, gaining almost 25% since mid-February, boosted by calls for colder temperatures in major consuming regions across the U.S. that helped tighten the market.
Still, some analysts have warned that further gains may be limited with spring's low-demand shoulder season looming.
The heating season from November through March is the peak demand period for U.S. gas consumption. Nearly 50% of all U.S. households use gas for heating.
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.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in May fell 0.5% to trade at USD94.17 a barrel, while heating oil for May delivery dropped 0.8% to trade at USD2.923 per gallon.