Natural gas settled -0.82% down at 146.50 as market players continued to monitor tropical storm activity in the Gulf of Mexico, amid easing concerns over a disruption to supplies from the region. Market also looked ahead closely watched US government report on natural gas supplies. The US NHC said that the Category-1 hurricane hit the coast of southeast Louisiana as it made landfall, likely sparing Gulf Coast oil production facilities from significant damage and easing worries over a disruption to supplies from the region. The center expects the storm to move northwest later Wednesday. Energy traders track tropical weather in the Gulf of Mexico, with prices typically spiking in the event it disrupts production. However, offshore Gulf of Mexico gas output plays a much smaller role in supplying the US than in recent years. Production in federal waters in the Gulf currently accounts for only 7% of natural gas output, down significantly from 17% in 2005. Meanwhile, market players shifted their focus to the US EIA's closely watched weekly report on natural gas inventories scheduled for Thursday. For today's session market is looking to take support at 144.8, a break below could see a test of 143.2 and where as resistance is now likely to be seen at 148.7, a move above could see prices testing 151.
Nat. Gas trading range for the day is 145.07-153.67.
Natural gas rallied on news that Hurricane Isaac has prompted more production to go offline
Offshore Gulf of Mexico gas output plays a much smaller role in supplying the U. S. than in recent years
Today natural gas storage: EXP: 65B PREV: 47B. Actual is at 8.00PM