Investing.com - Natural gas futures inched higher on Friday, as market players weighed shifting weather forecasts to assess the outlook for U.S. demand and supply levels.
On the New York Mercantile Exchange, natural gas for delivery in October tacked on 1.0 cent, or 0.37%, to end at $2.693 per million British thermal units.
Demand for natural gas is expected to be moderate next week as cooler weather moves across the eastern part of the U.S. Meanwhile, weather in the west will be warmer before cooling off as the week progresses.
Summer heat has waned and cooler temperatures beckon with the approach of autumn. Natural gas accounts for about a quarter of U.S. electricity generation.
Despite the bearish demand outlook, the October natural gas contract rose 4.2 cents, or 1.43%, on the week.
On Thursday, futures rallied 3.2 cents, or 1.21%, after data showed that U.S. natural gas supplies rose less than expected last week.
According to the U.S. Energy Information Administration, natural gas storage rose by 68 billion cubic feet, below expectations for an increase of 75 billion.
Supplies rose by 90 billion cubic feet in the same week last year, while the five-year average change is an increase of 63 billion cubic feet.
Total U.S. natural gas storage stood at 3.261 trillion cubic feet, more than 17% higher than during the same week a year earlier and about 4% above the five-year average for this time of year.
Last spring, supplies were 55% below the five-year average, indicating producers have made up for all of last winter’s unusually strong demand.
The EIA's next storage report slated for release on Thursday, September 17 is expected to show a build of approximately 80 billion cubic feet for the week ending September 11.
That compares with builds of 90 billion cubic feet in the same week last year, while the five-year average change for the week is an increase of 70 billion cubic feet.
Elsewhere on the Nymex, crude oil for October delivery settled at $44.63 a barrel by close of trade on Friday, down $1.19, or 3.08%, on the week, while heating oil for October delivery lost 2.88% on the week to settle at $1.550 per gallon.