Natural gas futures slid on Thursday after data revealed U.S. natural gas stockpiles rose more than the five-year average last week, thus easing concerns over tight supplies.

On the New York Mercantile Exchange, natural gas futures for delivery in September traded at $3.918 per million British thermal units during U.S. trading, down 0.39%. The commodity hit a session low of $3.914, and a high of $3.981.

The September contract settled up 0.92% on Wednesday to end at $3.933 per million British thermal units.

Natural gas futures were likely to find support at $3.761 per million British thermal units, Monday's low, and resistance at $3.981, the earlier high.

Profit taking wiped out gains stemming from warmer temperatures after investor sold on news of a bearish supply report.

The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended August 1 rose by 82 billion cubic feet, below expectations for an increase of 84 billion cubic feet.

Still, inventories rose by 90 billion cubic feet in the same week a year earlier, while the five-year average change is a build of 49 billion cubic feet, which sent prices falling.

Injections of gas into storage have surpassed the five-year average for 16 consecutive weeks, alleviating concerns over tightening supplies.

Total U.S. natural gas storage stood at 2.389 trillion cubic feet. Stocks were 538 billion cubic feet less than last year at this time and 608 billion cubic feet below the five-year average of 2.948 trillion cubic feet for this time of year.

Natural gas prices have seen increasing support in recent sessions as seasonably warm temperatures have ended a summertime cool snap.

Demand for natural gas tends to fluctuate in the summer based on hot weather and air conditioning use.

Elsewhere on the NYMEX, light sweet crude oil futures for delivery in September were up 0.08% at $97.00 a barrel, while heating oil for September delivery were up 0.44% at $2.8887 per gallon.

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