Commodity Trading Tips for Natural Gas by KediaCommodity

Natural-GasNatural Gas settled 3.02% up at 188.70 shot up on news supplies were on the decline in the US, while blizzard warnings went up for a good portion of the northern US, likely increasing the demand for heating. The US EIA revealed in its weekly report that natural gas storage in the US in the week ended Dec. 14 fell by 82bcf, outpacing expectations for a decline of 72bcf. Inventories fell by 100bcf in the same week a year earlier, while the 5 year average change for the week represented a decline of 144bcf. Total US natural gas storage stood at 3.724tcf as of last week. Stocks were 66bcf higher than during the same period a year ago and 345bcf above the 5-year average of 3.379tcf for this time of year. The report showed that in the East Region, stocks were 80bcf above the 5-year average, following net withdrawals of 49bcf. Stocks in the Producing Region were 183bcf above the 5 year average of 1.078bcf, after a net withdrawal of 24bcf. Meanwhile, blizzard conditions striking the Midwest were due to spread to the more heavily populated northeastern US, where temperatures were expected to remain cooler than normal for the next two weeks. About half of US households use gas for heating purposes, according to Energy Department data. In yesterday's trading session natural gas has touched the low of 183.2 after opening at 183.2, and finally settled at 188.7. For today's session market is looking to take support at 184.3, a break below could see a test of 180 and where as resistance is now likely to be seen at 191.9, a move above could see prices testing 195.2.

Trading Ideas:

Nat.Gas trading range for the day is 179.97-195.17.

Natural gas gained adding to strong gains after report from EIA showed natural gas supplies fell more-than-expected last week.

Market players continued to focus on shifting weather forecasts for next few weeks to gauge strength of U.S. heating demand.

U.S. EIA said in its weekly report that natural gas storage in the U.S. fell by 82 billion cubic feet.