Investing.com - Natural gas futures retreated from a three-week high on Thursday, after data showed that U.S. natural gas supplies rose more than expected last week.
On the New York Mercantile Exchange, natural gas for delivery in July fell 1.48%, or 7.4 cents, to trade at $4.541 per million British thermal units during U.S. morning hours. Futures traded at $4.621 prior to the release of the supply data.
Prices rose to a session high of $4.633 earlier in the day, the most since May 8.
Natural gas rallied 2.31%, or 10.4 cents, on Wednesday to settle at $4.615. Futures were likely to find support at $4.364 per million British thermal units, the low from May 27 and resistance at $4.754, the high from May 8.
The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended May 23 rose by 114 billion cubic feet, above forecasts for an increase of 110 billion cubic feet.
Inventories rose by 88 billion cubic feet in the same week a year earlier, while the five-year average change for the week is a build of 93 billion cubic feet.
Total U.S. natural gas storage stood at 1.380 trillion cubic feet. Stocks were 748 billion cubic feet less than last year at this time and 922 billion cubic feet below the five-year average of 2.302 trillion cubic feet for this time of year.
Producers would need to add approximately 2.5 trillion cubic feet to storage by November 1 to meet typical winter demand, analysts said.
Meanwhile, market players prepped for the arrival of summertime temperatures in the U.S., which should hike demand for air conditioning.
Updated weather-forecasting models called for above-normal temperatures to settle in across parts of the lower 48 U.S. states through the first week of June, which sent natural gas prices rising.
Demand for natural gas tends to rise in the summer months as warmer temperatures increase the need for gas-fired electricity to power air conditioning.
Elsewhere on the Nymex, U.S. crude oil for delivery in July rose 0.28%, or 29 cents, to trade at $103.01 a barrel, while heating oil for July delivery eased up 0.02% to trade at $2.930 per gallon.
Please LIKE our Facebook page - it makes us stronger: