Natural gas prices erase earlier declines to turn 0.7% higher to $2.571/mmBtu after the EIA reports a below-forecast increase in gas storage.
The data shows inventories climbed by 78bcft last week, versus consensus expectations of an 83-bcf rise, suggesting demand from a southern heat wave may have been higher than earlier thought.
Total gas in storage now stands at 3.019 tcf, which is 15% above last year at this time, but 3% below the five-year average.
The data puts prices back within striking distance of a three-month high of $2.5850/mmBtu reached Monday
Currently the prompt month NG contract is trading at $2.569, up 1.7 cents.
