Natural gas settled -4.22% down at 170.70 extended losses on forecasts for warmer than normal temperatures to hold for much of the lower 48 US states. Rising supplies pushed prices to lows not seen since September. The US National Weather Service predicted above normal temperatures for most of the eastern third of the country for a ten-day period, while weather service provider MDA Weather Services issued an 11-15 day outlook calling for mostly normal readings across the US, with above-normal temperatures forecast for the eastern half of the country. The news sent natural gas prices falling, as previous reports have consistently called for warm temperatures as well. Natural gas futures are very sensitive to weather reports in the US winter. The US heating season running from November through March sees peak demand for gas. About half of US households use gas for heating purposes, according to Energy Department data. High inventory levels pushed prices down as well. The US EIA reported on Monday that gross US gas production in October rose to 73.54bcf per day, the second consecutive monthly record high. Early withdrawal estimates for this Thursday's storage data range from 155bcf to 176bcf. Inventories fell by 137bcf in the same week a year earlier, while the five-year average change for the week is a decline of 165bcf. For today's session market is looking to take support at 168.3, a break below could see a test of 165.9 and where as resistance is now likely to be seen at 175.2, a move above could see prices testing 179.7.

Trading Ideas:

Nat. Gas trading range for the day is 165.9-179.7.

Natural gas fell as forecasts showing mild weather across most parts of the U. S. in the next few weeks weighed on sentiment.

Natural gas prices came under additional pressure as traders remained concerned over record-high production levels.

Today Natural Gas Storage: EXP: -185B PREV: -135B. Actual is at 9.00PM