Natural gas yesterday traded with the range bound node and settled 0.05% flat at 123 on forecasts for cooler weather across much of the U.S. and bottom fishing investors, pressure seen after a report from the US EIA showed that Natural Gas inventories declined less than expected last week, underscoring concerns over elevated US storage levels.
The US EIA said in its weekly report that natural gas storage in the US in the week ended Feb 3 fell by 78bcf, after declining by 132bcf in the preceding week.
Market had expected US natural gas storage to drop by 85bcf. Natural gas prices were supported after the CWG stated it forecasts colder than normal temperatures into early next week on the east coast of the USA, earlier in the week.
However, prices fluctuated as traders said those expected brief periods of cold weather came far too late to dent the oversupply in the natural gas market.
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. Winter so far in the US has been the second mildest since 1950.
It is running about 13% warmer than the 30-year normal.
For today's session market is looking to take support at 119.2, a break below could see a test of 115.3 and where as resistance is now likely to be seen at 127.4, a move above could see prices testing 131.7.
Trading Ideas:
Natural gas trading range for the day is 115.33-131.73.
Natural gas settled flat after a report from the US EIA showed that Natural Gas inventories declined less-than-expected.
EIA said that natural gas storage fell by 78bcf, after declining by 132bcf in the preceding week.
Natural gas prices got support as weather service provider Weather.com said mild winter temperatures.
Courtesy: Kedia Commodities
Looking for Agri Research? Visit research.commodityonline.com
