Commodity Trading Tips for Natural Gas by KediaCommodity

Natural-GasNatural Gas yesterday traded with the positive node and settled 2.24% up at 205.70 hit highs not seen since November of last year after official data revealed supplies plunged well beyond market expectations last week. The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended March 8 fell by 145bcf, compared to expectations for a drop of 134bcf. Inventories fell by 66bcf in the same week a year earlier, while the five-year average change for the week is a decline of 74bcf. Total U.S. natural gas storage stood at 1.938 trillion cubic feet as of last week. Stocks were 440bcf less than last year at this time and 198bcf above the five-year average of 1.740 trillion cubic feet for this time of year. The report showed that in the East Region, stocks were 38bcf above the five-year average, following net withdrawals of 92bcf. Stocks in the Producing Region were 85bcf above the five-year average of 684bcf after a net withdrawal of 48bcf. Elsewhere, winter continues to refuse to suggest when it will yield to warmer springtime weather patterns. Industry group MDA Weather Services reported earlier that that below-normal temperatures should stick around over the heavily populated eastern regions of the country during the next five days. For today's session market is looking to take support at 201.9, a break below could see a test of 198.1 and where as resistance is now likely to be seen at 208, a move above could see prices testing 210.3.

Trading Ideas:

Nat.Gas trading range for the day is 198.1-210.3.

Natural gas ended higher after a report from the U.S. EIA showed natural gas supplies fell more-than-expected last week.

EIA said in its weekly report that natural gas storage in the U.S. fell by 145 billion cubic feet

Bullish speculators are betting on the cold weather boosting late-winter demand for the heating fuel.