Natural gas yesterday traded with the positive node and settled 0.65% up at 185.2 overall traded in the tight range as pressure seen over a disruption to supplies in the Gulf of Mexico eased, while milder weather forecasts for the eastern US states can also weight the market.
The US NHC said earlier that Tropical Storm Nate weakened to a post-tropical cyclone after making landfall in central-eastern Mexico, away from the oil-rich Gulf of Mexico region.
The NHS added that Tropical Storm Maria moved further away from the Gulf, heading northwest with little change in strength forecast.
Major oil and natural gas producers, such as BP and Exxon said workers were returning to production facilities in the western Gulf, after being evacuated before the weekend.
Natural gas traders track tropical storm activity in the event it disrupts production in the Gulf of Mexico, which is home to 10% of US natural gas production.
Natural gas prices came under further pressure amid concerns over the short-term demand outlook for the fuel, as the peak summer cooling-demand season was approaching an end.
The US NWS’s 1week weather forecast showed that temperatures in the eastern half of the US will be cooling during the upcoming week.
For today's session market is looking to take support at 183.1, a break below could see a test of 180.9 and where as resistance is now likely to be seen at 186.6, a move above could see prices testing 187.9.
Trading Ideas:
Natural Gas trading range is 180.9-187.9.
Nat gas can dip amid concerns over the short-term demand outlook, as the peak summer demand approaching to end.
Tropical Storm Maria moved further away from the Gulf, heading northwest with little change in strength forecast.
Oil and Gas producers, such as BP and Exxon said workers were returning to production facilities after being evacuated.
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