Natural gas yesterday traded with the negative node and settled -0.65% down at 108.3 trimmed losses to trade largely unchanged as traders closed out bets on lower prices after futures moved into oversold territory. NYMEX electronic and floor trading was closed on Friday in observance of the Good Friday holiday. Natural gas prices came under heavy selling pressure early in the session as the bearish sentiment on the heating fuel remained intact amid ongoing concerns over elevated US storage levels. Weekly storage data from the US released last week showed that natural gas storage in the US rose by 42bcf last week, the third consecutive seasonal injection of natural gas for the year. US gas inventories ended the winter at a record high 2.5 trillion cubic feet, about 60% above normal and well above the previous March 31 high of 2.148 trillion set in 1983. But prices recovered, moving off the ten-year low as traders closed out bets on lower prices after futures moved into oversold territory, a move known as covering a short position. Weather service provider AccuWeather said late last week that it expects temperatures in the US Northeast to average above normal for the next five days, then cool to slightly below normal by early next week. Market sees prices to drop even further and test the $2.00-level amid expectations gas stockpiles will continue to rise throughout the next few months as demand weakens. In yesterday's trading session natural gas has touched the low of 107 after opening at 108.8, and finally settled at 108.3. For today's session market is looking to take support at 107.1, a break below could see a test of 106 and where as resistance is now likely to be seen at 109.3, a move above could see prices testing 110.4.
Nat. Gas trading range for the day is 105.97-110.37.
Natural gas trimmed losses as traders closed out on lower prices after futures moved into oversold territory.
Natural gas prices came under heavy selling pressure amid ongoing concerns over elevated US storage levels.
AccuWeather said temperatures in the US will be slightly below normal by early next week.
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