Natural settled flat at 178.20 in the volatile session, prices erased earlier losses after investors viewed the commodity as oversold. Bearish supply data showing supplies fell less than expected last week sent prices plunging earlier to attractive levels. Prices tumbled earlier after the U.S. EIA said in its weekly report that natural gas storage in the U.S. in the week ended Jan. 25 fell by 194bcf, compared to expectations for a drop of 206bcf. Inventories fell by 149bcf in the same week a year earlier, while the five-year average change for the week is a decline of 178bcf. Total U.S. natural gas storage stood at 2.802tcf as of last week. Stocks were 202bcf less than last year at this time and 304bcf above the five-year average of 2.498tcf for this time of year. Meanwhile, natural gas traders continued to closely track weather forecasts for the next few weeks in an attempt to gauge the strength of winter heating demand. Updated weather forecast models released earlier this week pointed to milder temperatures setting in the middle of February, giving the U.S. Midwest and Northeast a break from below-normal temperatures that have pushed up energy prices. The CWG predicted above-normal temperatures in the eastern half of the U.S. from Feb. 7 through Feb. 11. For today's session market is looking to take support at 174.1, a break below could see a test of 169.9 and where as resistance is now likely to be seen at 182.1, a move above could see prices testing 185.9.

Trading Ideas:

Nat.Gas trading range for the day is 169.93-185.93.

Natural settled unchanged as bearish supply data showing supplies fell less than expected.

U.S. EIA said in its weekly report that natural gas storage fell by 194 billion cubic feet.

Bearish speculators are betting on the mild weather reducing winter demand for the heating fuel.