Investing.com - Natural gas futures added to sharp gains during U.S. morning hours on Thursday, rallying to the strongest level since late-November after a report from the U.S. Energy Information Administration showed natural gas supplies fell more-than-expected last week. On the New York Mercantile Exchange, natural gas futures for delivery in April traded at USD3.772 per million British thermal units during U.S. morning trade, up 2.5% on the day. Prices rose by as much as 2.9% earlier in the session to hit a daily high of USD3.792 per million British thermal units, the strongest level since November 29. The April contract traded at USD3.756 prior to the release of the U.S. Energy Information Administration report. The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended March 8 fell by 145 billion cubic feet, compared to expectations for a drop of 134 billion cubic feet. Inventories fell by 66 billion cubic feet in the same week a year earlier, while the five-year average change for the week is a decline of 74 billion cubic feet. Total U.S. natural gas storage stood at 1.938 trillion cubic feet as of last week. Stocks were 440 billion cubic feet less than last year at this time and 198 billion cubic feet above the five-year average of 1.740 trillion cubic feet for this time of year. The report showed that in the East Region, stocks were 38 billion cubic feet above the five-year average, following net withdrawals of 92 billion cubic feet. Stocks in the Producing Region were 85 billion cubic feet above the five-year average of 684 billion cubic feet after a net withdrawal of 48 billion cubic feet. Meanwhile, sentiment on the heating fuel remained upbeat after weather forecasts released earlier continued to point to colder temperatures spreading across the eastern half of the U.S. over the next week. In its one to five-day weather outlook, industry group MDA Weather Services said that below-normal temperatures were seen lingering in the East. Bullish speculators are betting on the cold weather boosting late-winter demand for the heating fuel. The heating season from November through March is the peak demand period for U.S. gas consumption. Nearly 50% of all U.S. households use gas for heating. Natural gas prices have rallied nearly 18% since falling close to a four-month low of USD3.125 per million British thermal units on February 15, boosted by calls for colder temperatures in major consuming regions across the U.S. Elsewhere on the NYMEX, light sweet crude oil futures for delivery in April added 0.4% to trade at USD92.88 a barrel, while heating oil for April delivery added 0.25% to trade at USD2.931 per gallon.

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