Natural gas settled down as milder weather forecasts in the US and easing concerns over a disruption to supplies in the Gulf of Mexico dragged down prices. Total U.S. natural gas storage stood at 3.025 trillion cubic feet.
Stocks were 131 billion cubic feet less than last year at this time and 60 billion cubic feet below the five-year average of 3.085 trillion cubic feet for this time of year.
The report showed that in the East Region, stocks were 96 billion cubic feet below the five-year average, following net injections of 58 billion cubic feet. Energy traders track tropical storm activity in the event it disrupts production in the Gulf of Mexico, which is home to 10% of U.S. natural gas production.
The number of rigs drilling for natural gas in the United States fell by three this week to 892, the third straight weekly decline. In yesterday's trading session natural gas has touched the low of 183.5 after opening at 183.6, and finally settled at 184.
For today's session market is looking to take support at 183.6, a break below could see a test of 183.1 and where as resistance is now likely to be seen at 184.4, a move above could see prices testing 184.7.
Trading Ideas:
Natural Gas trading range is 183.1-184.7.
Natural gas dropped as easing concerns over a disruption to supplies dragged down prices
Energy traders track tropical storm activity in the event it disrupts production in the Gulf of Mexico
The number of rigs drilling for natural gas in the United States fell by three this week to 892
Courtesy: Kedia Commodities
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