Investing.com - U.S. natural gas futures reversed losses on Thursday morning, spiking to the highest levels of the session after data showed that natural gas supplies in storage in the U.S. rose less than expected last week.
Natural gas for delivery in November on the New York Mercantile Exchange rallied 6.9 cents, or 2.15%, to $3.279 per million British thermal units by 10:33AM ET (14:33GMT). Futures were at around $3.169 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. rose by 79 billion cubic feet in the week ended October 7, below expectations for an increase of 87 billion cubic feet.
That compared with a gain of 80 billion cubic feet in the preceding week, 97 billion a year earlier and a five-year average build of 92 billion cubic feet.
Total U.S. natural gas storage stood at 3.759 trillion cubic feet, just 1.5% higher than levels at this time a year ago and 5.1% above the five-year average for this time of year.
U.S. natural gas futures touched a 22-month peak of $3.300 earlier this week, as the outlook for a colder winter boosted demand expectations for the heating fuel.
Gas futures have made a dramatic recovery in recent months, rising nearly 50% since hitting a 20-year low of $1.611 in early March, as an unusually warm summer helped trim a supply surplus that was weighing on prices.