Natural Gas yesterday traded with the positive node and settled 1.92% up at 159 despite the National Hurricane Center reporting Tropical Storm Debby mostly avoided the Gulf of Mexico’s energy producing area. Natural gas prices were higher earlier in the day as market players continued to monitor the path of Tropical Storm Debby as it hovered in the Gulf of Mexico. But some pressure can be seen as NHC said Tropical Storm Debby will move over northern Florida in a day or two before weakening to a depression and re-emerging later this week in the Atlantic. Market expect most drilling rigs to return to production in the near-term after the storm shut 34.8% of the Gulf's gas output. Meanwhile, prices found some support from forecasts showing warmer than normal weather across most parts of the US in the coming ten days. Speculation that utility providers in the US were switching from pricier coal to cheaper natural gas provided further support over recent weeks. The storage surplus to last year will have to be cut by at least another 435bcf to avoid breaching the government's 4.1tcf estimate of total capacity. For today's session market is looking to take support at 156.5, a break below could see a test of 153.9 and whereas resistance is now likely to be seen at 160.2, a move above could see prices testing 161.3.

NATURAL GAS

Nat. Gas trading range for the day is 153.33-162.73.

Natural gas ended firm despite of Storm mostly avoided the Gulf of Mexico’s energy producing area.

Prices found some support from forecasts showing warmer than normal weather.

Speculation that utility providers in the US were switching from pricier coal to cheaper natural gas.

Natural Gas is holding with a support at 153.33 and resistance will be likely at 162.73.

BUY NAT.GAS JULY ON DIP @ 154.50 SL 152 TGT 156.50-158.50.MCX