Natural gas yesterday traded with the positive node and settled 2.98% up at 161.00 bounced from the lows after a report from the US EIA showed US gas supplies rose more than expected last week, then bouncing into positive territory on bargain hunting buying. The US EIA said in its weekly report that natural gas storage in the US in the week ended July 6 rose by 33bcf, above market expectations for an increase of 26bcf. US gas inventories did not hit the milestone 3tcf level until Aug 31 of last year. Market warned that without strong demand through the rest of the summer, gas inventories will reach the limits of available capacity later this year. Natural gas futures remained supported after updated weather forecasts showed that the US Midwest was expected to remain hot and dry until the middle of July, while heat returns to the East Coast next week. A bout of hot weather across much of the country over the last several weeks helped boost natural gas prices. Spot prices have rallied nearly 25% in the past three weeks, as extreme heat conditions in the US mid-Atlantic boosted demand for the fuel. Warmer than normal temperatures increase the need for gas-fired electricity to power air conditioning, boosting demand for natural gas. For today's session market is looking to take support at 154.9, a break below could see a test of 148.9 and where as resistance is now likely to be seen at 164.7, a move above could see prices testing 168.5.
Nat. Gas trading range for the day is 148.87-168.47.
Natural gas bounced from the lows after a report from EIA showed gas supplies rose more-than-expected.
EIA said in its weekly report that natural gas storage rose by 33bcf vs 26bcf.
Warmer than normal temperatures increase the need for gas-fired electricity boosting demand for natural gas.
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