Natural gas yesterday traded with the positive node and settled 0.74% up at 123 as support seen after the forecasts for cooler weather across much of the US.
Natural gas prices were supported yesterday, after the CWG stated it forecasts colder than normal temperatures into early next week on the east coast of the USA.
However, prices could not hold on to gains as expect brief periods of cold weather came far too late to dent the oversupply in the Natural Gas market.
Official supply data released last week showed that US gas inventories remain at their highest level ever for this time of year.
Total US natural gas storage stood at 2.966tcf as of last week, 25% above both year-ago levels and the 5-year average for this time of year.
Early estimates for next week’s storage data range from a withdrawal of 78bcf to 110bcf, well below last year's drop of 206bcf and the 5-year average decline for the week of 191bln.
This is typically the coldest time in winter, but temperatures in the US have yet to reach levels cold enough to boost demand for the heating fuel, keeping prices depressed at unseasonably low levels.
For today's session market is looking to take support at 119.7, a break below could see a test of 116.3 and where as resistance is now likely to be seen at 125.4, a move above could see prices testing 127.7.
Trading Ideas:
Nat.Gas trading range for the day is 116.33-127.73.
Natural gas closed with a marginal gain as support from forecasts for cooler weather across much of the US.
Natural gas prices were supported yesterday, after the CWG stated it forecasts colder than normal temperatures.
Today Natural Gas Storage: EXP: -82B PREV: -132B. Actual is at 9.00PM
Courtesy: Kedia Commodities
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