Natural gas yesterday traded with the positive node and settled 2.39% up at 150.7. Natural gas prices as forecasts of warmer-than-normal temperatures are expected to heat up demand for the fuel. Demand expectations have come to offset concern about the heavy natural-gas supply overhang, now at a seasonal record high of 2.667 trillion cubic feet. The Energy Information Administration on Thursday said gas storage rose by 61 billion cubic feet in the week ended May 11-still high, but less than the year-ago level of 86 bcf. Traders are confident that above-average temperatures forecast for the north and east will spur demand for natural gas from power utilities for air conditioning. Warmer-than-normal weather since last fall had squelched demand for natural gas-fired home heating. The increase was less than the year-ago level of 86 bcf, but inventories still stands at 2.667 trillion cubic feet, a record high for this time of year. Traders now are essentially betting that increased demand from utilities will help pare the inventory overhang and drive prices up closer to $3. In yesterday's trading session natural gas has touched the low of 147.5 after opening at 147.5, and finally settled at 150.7. For today's session market is looking to take support at 148.3, a break below could see a test of 145.9 and where as resistance is now likely to be seen at 152.3, a move above could see prices testing 153.9.
Nat. Gas trading range for the day is 145.9-153.9.
Natural gas prices as forecasts of warmer-than-normal temperatures are expected to heat up demand for the fuel.
Demand expectations have come to offset concern about the heavy natural-gas supply overhang
EIA said gas storage rose by 61 bcf is still high, but less than the year-ago level of 86 bcf.
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