Investing.com - Natural gas futures traded higher Friday as bullish speculators weighed the data and fished for the bottom in the heating fuel.
On the New York Mercantile Exchange, Natural gas futures for June delivery traded at USD2.521 per million British thermal units soaring 1.39%.
Sentiment on the heating fuel has improved in recent weeks after hitting a string of fresh 10-year lows. Prices are up almost 18.5% since hitting a decade-low of USD1.902 on April 19, amid indications major North American natural gas producers were cutting back on production in response to lower prices.
Industry research group Baker Hughes said Friday that the number of active rigs drilling for natural gas in the U.S. fell by 7 last week to 606, the lowest since April 2002, when there were 591 rigs operating.
It was the fourth drop in the past five weeks. The gas rig count is down by almost 35% since peaking at 936 in October.
The steady decline in rigs drilling for natural gas in the U.S. has fuelled speculation that major North American natural gas producers will begin to curb output in response to declining prices.
The report follows government data released last week showing that gross natural gas production in February fell 0.6% in the lower 48 states to 72.32 billion cubic feet per day, the lowest level since October 2011.
Meanwhile, speculation that utility providers in the U.S. were switching from pricier coal to cheaper natural gas provided further support. U.S. power companies used 34% more gas in February than a year earlier, Energy Department data showed.
However, prices remain vulnerable to a downside correction in the near-term as traders remain concerned over elevated U.S. storage levels.
The U.S. Energy Information Administration said last week that natural gas storage in the U.S. rose by 28 billion cubic feet to 2.756 trillion cubic feet, up 48% from year ago levels and 50% higher than the five-year average.
If weekly stock builds through October match the five-year average, inventories would top out at 4.532 trillion cubic feet, 9% over peak capacity estimates of about 4.1 trillion cubic feet.
Early injection estimates for this week’s storage data range from 25 billion cubic feet to 65 billion cubic feet, compared to last year's build of 71 billion cubic feet. The five-year average change for the week is an increase of 84 billion cubic feet.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in June gave back 1.05% to trade at USD96.06 a barrel.
On the New York Mercantile Exchange, Natural gas futures for June delivery traded at USD2.521 per million British thermal units soaring 1.39%.
Sentiment on the heating fuel has improved in recent weeks after hitting a string of fresh 10-year lows. Prices are up almost 18.5% since hitting a decade-low of USD1.902 on April 19, amid indications major North American natural gas producers were cutting back on production in response to lower prices.
Industry research group Baker Hughes said Friday that the number of active rigs drilling for natural gas in the U.S. fell by 7 last week to 606, the lowest since April 2002, when there were 591 rigs operating.
It was the fourth drop in the past five weeks. The gas rig count is down by almost 35% since peaking at 936 in October.
The steady decline in rigs drilling for natural gas in the U.S. has fuelled speculation that major North American natural gas producers will begin to curb output in response to declining prices.
The report follows government data released last week showing that gross natural gas production in February fell 0.6% in the lower 48 states to 72.32 billion cubic feet per day, the lowest level since October 2011.
Meanwhile, speculation that utility providers in the U.S. were switching from pricier coal to cheaper natural gas provided further support. U.S. power companies used 34% more gas in February than a year earlier, Energy Department data showed.
However, prices remain vulnerable to a downside correction in the near-term as traders remain concerned over elevated U.S. storage levels.
The U.S. Energy Information Administration said last week that natural gas storage in the U.S. rose by 28 billion cubic feet to 2.756 trillion cubic feet, up 48% from year ago levels and 50% higher than the five-year average.
If weekly stock builds through October match the five-year average, inventories would top out at 4.532 trillion cubic feet, 9% over peak capacity estimates of about 4.1 trillion cubic feet.
Early injection estimates for this week’s storage data range from 25 billion cubic feet to 65 billion cubic feet, compared to last year's build of 71 billion cubic feet. The five-year average change for the week is an increase of 84 billion cubic feet.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in June gave back 1.05% to trade at USD96.06 a barrel.