Natural gas yesterday traded with the negative node and settled -0.52% down at 174.2 tumbling to a 13-month low as warmer than normal winter weather in the US underlined the view that gas supplies are more than ample to meet US winter heating needs. The CWG said Friday that it expected above average temperatures along most parts of the US through mid-December. The weather group forecast temperatures to be at least 5degrees warmer than normal along the East Coast and about 3degrees higher in interior regions, according to its 6-to-10-day outlook. AccuWeather offered a similar outlook, saying it expected temperatures in the US Northeast and Midwest, key gas-consuming regions, to mostly range from normal to slightly above normal from Dec13 to Dec17. Natural gas prices have closely tracked weather forecasts in recent weeks. Above-normal winter temperatures reduce the need for gas-fired electricity to heat homes, dampening demand for natural gas. Concerns over record-high supply levels in the US also added to the selling pressure. Gas futures typically climb during the winter months, as temperatures fall and demand for heating fueled by natural gas rises. But mild weather coupled with high production levels have kept prices depressed in recent weeks. For today's session market is looking to take support at 171.7, a break below could see a test of 169.1 and where as resistance is now likely to be seen at 175.7, a move above could see prices testing 177.1.
Natural Gas trading range is 169.1-177.1.
Natural gas tumbled as warmer than normal winter weather in US underlined view that gas supplies are more than ample
US inventories typically increase during the so-called "shoulder season", the period in autumn after air-conditioning demand falls
This year's increase, aided by unusually warm temperatures, offers a much larger cushion than in most years as winter approaches.