Investing.com - Natural gas futures trimmed gains on Thursday, after data showed that U.S. natural gas supplies fell broadly in line with market expectations last week.
On the New York Mercantile Exchange, natural gas for delivery in May traded at $4.388 per million British thermal units during U.S. morning hours, up 0.48%, or 2.1 cents. Futures traded at $4.405 prior to the release of the supply data.
Natural gas futures held in a range between $4.313 per million British thermal units and $4.422.
The May contract rallied 2.06%, or 8.8 cents, on Wednesday to settle at $4.364 per million British thermal units.
Futures were likely to find support at $4.221 per million British thermal units, the low from April 2 and resistance at $4.487, the high from March 31.
The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended March 28 fell by 74 billion cubic feet, in line with forecasts.
The five-year average change for the week is a drop of 8 billion cubic feet.
Total U.S. natural gas storage stood at 822 billion cubic feet, the lowest for this time of year since 2003.
Stocks were 878 billion cubic feet less than last year at this time and 992 billion cubic feet below the five-year average of 1.814 trillion cubic feet for this time of year.
The report showed that in the East Region, stocks were 448 billion cubic feet below the five-year average, following net withdrawals of 46 billion cubic feet.
Stocks in the Producing Region were 410 billion cubic feet below the five-year average of 762 billion cubic feet after a net withdrawal of 24 billion cubic feet.
Natural gas prices fell to an 11-week low on Wednesday amid concerns that the arrival of spring will bring warmer temperatures throughout the U.S. and cut into demand for heating.
Spring and fall see 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. Approximately 52% of U.S. households use natural gas for heating, according to the Energy Department.
Elsewhere on the Nymex, light sweet U.S. crude oil for delivery in May shed 0.12%, or 12 cents, to trade at $99.51 a barrel, while heating oil for May delivery added 0.26% to trade at $2.874 per gallon.
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