Investing.com - The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. fell by 57 billion cubic feet in the week ended March 2, while analysts had forecast a decline of 58 billion.
Thursday’s data compared with a draw of 78 billion cubic feet (bcf) in the preceding week and represented a decline of 680 billion from a year earlier and was also 300 bcf below the five-year average.
Total U.S. natural gas storage stood at 1.625 trillion cubic feet, 29.5% lower than levels at this time a year ago and also 15.6% below the five-year average for this time of year.
After the report, natural gas for delivery in April on the New York Mercantile Exchange fell 2.5 cents, or about 0.9%, to trade at $2.752 per million British thermal units by 10:34AM ET (15:34GMT).
Futures had been down 2.6 cents, or about 0.9%, at $2.751 prior to the release of the supply data.
Natural gas had been trading lower during most of Thursday's session in what appeared to be profit-taking as the commodity is on track for weekly gains of around 2.1% after updated weather forecasting models showed colder weather lingering over the eastern U.S. through mid-March.
Despite recent gains, market experts still warned that futures are likely to remain vulnerable in the near-term as the coldest part of the winter has effectively passed.
Natural gas prices are down nearly 25% since late January amid speculation the end of the winter heating season will bring warmer temperatures throughout the U.S. and cut into demand for the fuel.
Spring usually sees the weakest demand for natural gas in the U.S, as the absence of extreme temperatures curbs demand for heating and air conditioning.
The heating season from November through March is the peak demand period for U.S. gas consumption.