Investing.com - Natural gas futures added to losses on Thursday, tumbling to the lowest level since February after a report from the U.S. Energy Information Administration showed that natural gas supplies rose more-than-expected last week.
Market participants also continued to focus on near-term weather forecasts to gauge the strength of demand for the fuel.
On the New York Mercantile Exchange, natural gas futures for delivery in September traded at USD3.387 per million British thermal units during U.S. morning trade, down 1.7%.
The September contract traded at USD3.401 prior to the release of the U.S. Energy Information Administration report.
Nymex gas prices fell to USD3.344 per million British thermal units earlier in the session, the lowest level since February 24.
The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended July 26 rose by 59 billion cubic feet, above market expectations for an increase of 56 billion cubic feet.
Inventories rose by 28 billion cubic feet in the same week a year earlier, while the five-year average change for the week is a build of 47 billion cubic feet.
Total U.S. natural gas storage stood at 2.845 trillion cubic feet as of last week. Stocks were 368 billion cubic feet less than last year at this time and 34 billion cubic feet below the five-year average of 2.879 trillion cubic feet for this time of year.
The report showed that in the East Region, stocks were 119 billion cubic feet below the five-year average, following net injections of 44 billion cubic feet.
Stocks in the Producing Region were 55 billion cubic feet above the five-year average of 979 billion cubic feet after a net injection of 9 billion cubic feet.
Meanwhile, weather forecasting models continued to point to cooler temperatures across much of the U.S. Northeast and Midwest over the next six-to-ten-days, dampening summer cooling demand for the fuel.
Demand for natural gas tends to fluctuate in the summer based on hot weather and air conditioning use.
The September contract settled up 0.4% at USD3.446 per million British thermal units on Wednesday, as market players returned to the market to seek cheap valuations.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in September rose 2.4% to trade at USD107.55 a barrel, while heating oil for September delivery added 1.3% to trade at USD3.094 per gallon.
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