Natural Gas yesterday traded with the positive node and settled 0.86% up at 116.7 as investors begin to bet that prices have spurred demand and may result in production cuts. Prices have risen amid increasing concern among gas traders that low prices are spurring a surge in usage among utilities and manufacturers eager to use the cheap fuel instead of more expensive alternatives.  While U.S. gas inventories remain near record levels, rising demand coupled with signals that producers may continue to scale back output could help put a dent in the supply glut. The U.S. Energy Information Administration said Thursday that U.S. inventories rose by 47 billion cubic feet in the week ended April 20. The increase came in roughly in line with analysts' estimates, but the agency also revised downward the last four weeks of inventory data. Natural gas prices have been stung by a mild winter that has only worsened a supply glut caused by record production. U.S. inventories stood at 2.548 trillion cubic feet last week, on pace to reach total storage capacity by October. Concerns still persist that the inventory glut will drive prices lower this spring as seasonal weather demand fades and again pressure prices this summer as storage caverns fill up and force more gas into an over-supplied market. In yesterday's trading session natural gas has touched the low of 116.1 after opening at 116.3, and finally settled at 116.7. For today's session market is looking to take support at 116.1, a break below could see a test of 115.6 and where as resistance is now likely to be seen at 117.2, a move above could see prices testing 117.8.

Trading Ideas:

Nat.Gas trading range for the day is 115.57-117.77.

Natural gas rose as investors begin to bet that prices have spurred demand and may result in production cuts

US gas inventories remain near record levels, rising demand coupled with signals that producers may continue to scale back output

Concerns still persist that the inventory glut will drive prices lower this spring as seasonal weather demand fades