Naturalgas yesterday settled down -0.34% at 203.90 lowest level since February on Monday, as mild weather forecasts and concerns over ample supplies weighed on sentiment. Weather forecasting models continued to point to cooler temperatures across much of the US Northeast and Midwest over the next six-to-ten-days, dampening summer cooling demand for the fuel. Demand for natural gas tends to fluctuate in the summer based on hot weather and air conditioning use. Meanwhile, US supply levels also remained in focus following last week's bearish US inventory data. Natural gas storage in the US rose by 59 billion cubic feet last week, above market expectations for an increase of 56 billion cubic feet. Inventories rose by 28 billion cubic feet in the same week a year earlier, while the five-year average change for the week is a build of 47 billion cubic feet. Total US natural gas storage stood at 2.845 trillion cubic feet as of last week, just 1% below the five-year average. Updated weather forecasting models reported earlier that normal to below-normal temperatures will continue to hover over potions of the Midwest and Northeast US through mid-August, which sent natural gas prices falling on Monday. Mild mercury readings have many worried that demand will wane until warming trends return. Technically market is under fresh selling as market has witnessed gain in open interest by 5.55% to settled at 12941 while prices down -0.7 rupee, now Naturalgas is getting support at 202.3 and below same could see a test of 200.7 level, And resistance is now likely to be seen at 206.1, a move above could see prices testing 208.3.
Trading Ideas:
Naturalgas trading range for the day is 200.7-208.3.
Natural gas dropped on concerns that a snap of mild summertime temperatures across much of the eastern U. S. will crimp demand.
Prices seen under pressure due to continued mild weather in consuming regions in Northeast and Midwest despite some heat in South
Mild mercury readings have many worried that demand will wane until warming trends return.
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