Natural gas yesterday traded with the negative node and settled -1.44% down at 181.1, falling to a six-month low as mild autumn weather continued to pressure prices lower.
The CWG said that it expected seasonably-normal temperatures across most parts of the US Midwest, East Coast and South through late September.
Demand was also expected to slow in Texas, where temperatures were forecast to ease from recent highs, with industry weather group MDA Federal expecting cooler-than-usual weather throughout the state in the coming week.
Natural gas futures often reach a seasonal low in October, when mild weather reduces demand, before recovering in the winter, when heating-fuel use peaks. Natural Gas prices are likely to remain under pressure in the coming weeks, barring an unusual bout of cold weather triggering gas-fueled heating demand--or a storm in the Gulf of Mexico production area.
Markets were looking forward to the US EIA’s weekly report on U.S. Natural Gas stockpiles for the week ended. The report was expected to show that U.S. natural gas inventories increased by 90bcf, after adding 87bcf in the preceding week.
Natural gas stockpiles rose by 78bcf in the same week a year earlier. For today's session market is looking to take support at 180, a break below could see a test of 178.8 and where as resistance is now likely to be seen at 183, a move above could see prices testing 184.8.
Trading Ideas:
Natural Gas trading range is 178.8-184.8.
Natural gas ended down low as mild autumn weather continued to pressure prices lower.
Traders are eyeing a low-pressure storm system in the central Atlantic.
Today natural gas storage: EXP: 91B PREV: 87B
Courtesy: Kedia commodity
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