Natural Gas settled 0.4% up at 177.20 bounced from the lowest levels that is 173.70 reversing losses as bargain hunters hit the commodity despite a report from the US EIA showed US gas supplies rose more than expected last week. The US EIA said in its weekly report that natural gas storage in the US in the week ended September 28 rose by 77bcf, above market expectations for an increase of 71bcf. Inventories rose by 101bcf in the same week a year earlier, while the five-year average change for the week is an increase of 78bcf, according to US Energy Dept data. The report showed that in the East Region, stocks were 70bcf above the 5year average, following a net injection of 42bcf. Natural gas prices have rallied to the highest level of the year earlier in the week, after updated weather forecasts showed cooler than normal temperatures were expected across most parts of the US in the first two weeks of October. Market are betting on the cooler weather potentially leading to some early-Autumn demand for the heating fuel. Natural gas demand typically rises in the summer as air-conditioning use boosts utility demand, then sinks in the fall as demand weakens ahead of the peak winter heating season. For today's session market is looking to take support at 173.9, a break below could see a test of 170.6 and where as resistance is now likely to be seen at 180.3, a move above could see prices testing 183.4.

Trading Ideas:

Nat.Gas trading range for the day is 170.6-183.4.

Natural gas bounced from the lowest levels as bargain hunters hit the commodity despite of EIA a report.

EIA said in its report that natural gas storage in the U.S. in rose by 77 billion cubic feet.

Total U.S. natural gas storage stood at 3.653 trillion cubic feet as of last week.