Natural gas yesterday recovered and settled 0.55% up at 165 after a report from the EIA indicated US gas supplies rose less than expected last week. EIA said in its weekly report that natural gas storage in the US rose by 28bcf vs 34bcf. US gas inventories did not hit the milestone 3tcf level until August 31 of last year. Natural gas futures remained supported after updated weather forecasts showed that above normal temperatures were expected to linger across the northern half of the US for the next two weeks. Industry weather group MDA Earth Sat said that it expected a steady surge of higher than normal temperatures in the US over the next six to 10 days, and the forecast for the next two weeks has "warmed slightly" in the Northeast. 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 161.1, a break below could see a test of 157.3 and whereas resistance is now likely to be seen at 167.9, a move above could see prices testing 170.9.
Nat. Gas trading range for the day is 157.27-170.87.
Natural gas recovered and settled 0.55% up after a report from the EIA indicated US gas supplies dropped.
EIA said in its weekly report that natural gas storage in the US rose by 28bcf vs 34bcf.
Prices hit a seven-month high of 168.80 on July 6, but have struggled to reclaim that level.
Natural Gas is holding with a support at 157.27 and resistance will be likely at 170.87.
NAT. GAS SUSTAINED BELOW 168.50 LOOK WEAK TILL 160-158 LEVEL, WAIT FOR ENTRY.