The U.S. Energy Information Administration (EIA) reported Thursday morning that U.S. natural gas stocks decreased by 57 billion cubic feet for the week ending March 4. Analysts were expecting a storage withdrawal ranging around 51 billion to 58 billion cubic feet. The five-year average for the week is a withdrawal of around 71 billion cubic feet, and last year’s withdrawal for the week totaled 43 billion cubic feet. The withdrawal from storage totaled 48 billion cubic feet in the previous week.

Natural gas futures for April delivery traded up about 2% in advance of the EIA’s report, at around $1.80 per million BTUs, and traded around $1.76 after the data release. Last Thursday natural gas closed at $1.64 per million BTUs. On Wednesday NYMEX trading closed at $1.75, the high for the past five trading days. The 52-week range for natural gas is $1.63 to $3.19, and the low was posted early Thursday. One year ago, the price for a million BTUs was around $3.11.

Rising gas prices are very likely due to short covering after trading failed to break through a technical barrier at around $1.61 per million BTUs. Weather forecasts are calling for more mild weather ahead, and that should weigh on prices as we approach the end of the heating season (March 31).

While wet weather is expected over a large part of the U.S. in the next several days, the storms are not expected to be accompanied by much lower temperatures. The outlook for natural gas demand remains low to very low.

Stockpiles are about 58% above their levels of a year ago and nearly 42% above the five-year average.

The EIA reported that U.S. working stocks of natural gas totaled about 2.479 trillion cubic feet, around 727 billion cubic feet above the five-year average of 1.752 trillion cubic feet and 911 billion cubic feet above last year’s total for the same period. Working gas in storage totaled 1.568 trillion cubic feet for the same period a year ago.

Here’s how share prices of the largest U.S. natural gas producers reacting to this latest report:

Exxon Mobil Corp. (NYSE: XOM), the country’s largest producer of natural gas, traded down about 1.2%, at $81.41 in a 52-week range of $66.55 to $90.09.

Chesapeake Energy Corp. (NYSE: CHK) traded down about 4.3% at $4.43. The stock’s 52-week range is $1.50 to $16.98. Chesapeake is now the most-shorted NYSE stock.

EOG Resources Inc. (NYSE: EOG) traded down about 1.6% to $71.11. The 52-week range is $57.15 to $101.36.

Furthermore, the United States Natural Gas ETF (NYSEMKT: UNG) traded down about 1.4%, at $6.15 in a 52-week range of $5.78 to $15.28.

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