Investing.com - Natural gas prices shot up to highs not seen since mid-2011 on Thursday after official data revealed U.S. supplies fell more than expected last week, which suggested demand for the commodity may be heavier than anticipated.
On the New York Mercantile Exchange, natural gas futures for delivery in January traded at USD4.438 per million British thermal units during U.S. trading, up 4.39%.
The commodity hit a session low of USD4.267 and a high of USD4.447.
The January contract settled down 0.84% at USD4.251 per million British thermal units on Wednesday.
Futures were likely to find support at USD4.196 per million British thermal units, Tuesday's low, and resistance at USD4.811, the high from June 13, 2011.
The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended December 13 fell by 285 billion cubic feet, well beyond expectations for a withdrawal of 258 billion cubic feet.
Inventories fell by 70 billion cubic feet in the same week a year earlier, while the five-year average change for the week is a decline of 133 billion cubic feet.
Total U.S. natural gas storage stood at 3.248 trillion cubic feet. Stocks were 488 billion cubic feet less than last year at this time and 261 billion cubic feet below the five-year average of 3.509 trillion cubic feet for this time of year.
The report showed that in the East Region, stocks were 207 billion cubic feet below the five-year average, following net withdrawals of 132 billion cubic feet.
Stocks in the Producing Region were 23 billion cubic feet below the five-year average of 1.138 billion cubic feet after a net withdrawal of 99 billion cubic feet.
The data sent prices soaring as did weather reports calling for a return of below-normal temperatures for portions of the eastern half of the country in late December and in early January.
Colder temperatures hike the need for heating this time of year, thus increasing demand for natural gas at the nation's thermal power generators.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in February were up 0.89% and trading at USD98.93 a barrel, while heating oil for January delivery were up 0.70% and trading at USD3.0311 per gallon.
On the New York Mercantile Exchange, natural gas futures for delivery in January traded at USD4.438 per million British thermal units during U.S. trading, up 4.39%.
The commodity hit a session low of USD4.267 and a high of USD4.447.
The January contract settled down 0.84% at USD4.251 per million British thermal units on Wednesday.
Futures were likely to find support at USD4.196 per million British thermal units, Tuesday's low, and resistance at USD4.811, the high from June 13, 2011.
The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended December 13 fell by 285 billion cubic feet, well beyond expectations for a withdrawal of 258 billion cubic feet.
Inventories fell by 70 billion cubic feet in the same week a year earlier, while the five-year average change for the week is a decline of 133 billion cubic feet.
Total U.S. natural gas storage stood at 3.248 trillion cubic feet. Stocks were 488 billion cubic feet less than last year at this time and 261 billion cubic feet below the five-year average of 3.509 trillion cubic feet for this time of year.
The report showed that in the East Region, stocks were 207 billion cubic feet below the five-year average, following net withdrawals of 132 billion cubic feet.
Stocks in the Producing Region were 23 billion cubic feet below the five-year average of 1.138 billion cubic feet after a net withdrawal of 99 billion cubic feet.
The data sent prices soaring as did weather reports calling for a return of below-normal temperatures for portions of the eastern half of the country in late December and in early January.
Colder temperatures hike the need for heating this time of year, thus increasing demand for natural gas at the nation's thermal power generators.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in February were up 0.89% and trading at USD98.93 a barrel, while heating oil for January delivery were up 0.70% and trading at USD3.0311 per gallon.