Investing.com - U.S. natural gas futures edged higher on Thursday, extending gains after data showed that natural gas supplies in storage in the U.S. rose less than expected last week.
U.S. natural gas for May delivery tacked on 5.0 cents, or around 1.5%, to $3.316 per million British thermal units by 10:35AM ET (14:35GMT). Futures were at around $3.290 prior to the release of the supply data.
It settled lower on Wednesday after touching its strongest January 27 at $3.347.
The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. rose by 2 billion cubic feet in the week ended March 31, compared to forecasts for a build of 7 billion.
That compared with a withdrawal of 43 billion cubic feet in the preceding week, a gain of 12 billion a year earlier and a five-year average drop of 13 billion cubic feet.
Total natural gas in storage currently stands at 2.051 trillion cubic feet, according to the U.S. Energy Information Administration, 17.2% lower than levels at this time a year ago but 12.9% above the five-year average for this time of year.
Meanwhile, traders monitored shifting weather forecasts to assess the outlook for early-spring demand and supply levels.
Overall, an active spring pattern is expected the next two weeks across most parts of the U.S. with swings in demand between slightly lighter and stronger than normal every few days, according to forecasters at NatGasWeather.com.
Natural gas prices have closely tracked weather forecasts in recent weeks, as traders try to gauge the impact of shifting forecasts on early-spring demand.
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.
Nearly 50% of all U.S. households use gas for heating.