Natural gas gained on Thursday after a government report showed that U.S. supplies declined more than forecasted.
The U.S. Energy Department report released today showed that stockpiles fell by 200 billion cubic feet to 2.062 trillion cubic feet for the week that ended Feb. 1 compared to the forecasted 186 billion cubic feet.
Gas for March delivery increased by 10.8 cents, or 1.4 percent, to $8.102 per million British thermal units on the New York Mercantile Exchange the highest since Jan. 16.
Gas futures increased have increased by 8.3 percent this year, 5.1 percent higher than last year.
According to EarthSat Energy Weather of Rockville Maryland said low temperatures may set-in around Feb. 9 spreading towards New York and Boston increasing the need for heating.
Chicago temperatures were forecasted to fall as low as 1 degree Fahrenheit by Feb. 10, while New York and Boston temperatures may be as low as 29 and 30 degrees Fahrenheit respectively.
Stockpiles declined by 274 billion cubic feet in the week that ended Jan. 25, the highest since Jan. 17, 1997 posted a record 260 billion cubic feet.