Natural gas futures bearish after U S Energy InformationBack

The U.S. EIA (Energy Information Administration) reported on Thursday that the U.S. natural gas stocks increased by 90B cubic feet for the week ending April 17. Analysts were expecting a storage increase of 86 to 90B cubic feet. The five-year average for the week is a 50 billion cubic foot injection.

Natural Gas futures were likely to find support around 2.49$ per MMTQ units, the low from April 15, and resistance at $2.625, the high from April 15.

Total U.S. natural gas storage stood at 1.629 trillion cubic feet last week.

U.S. natural gas prices is under heavy selling pressure since recent weeks amid speculation the end of the winter heating season will bring warmer temperatures throughout the U.S. and cut into demand for the fuel.

In 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 best season from November to March is the peak demand period for U.S. gas consumption.

U.S. households use natural gas for heating around 49-50%, according to the EIA Report.