Commodity Trading Tips for Natural Gas by KediaCommodity

Ajay Kumar Leyangi 15 April 2013

Natural-Gas Natural Gas settled flat at 231.10 as sentiment on the commodity remained upbeat amid receding concerns over US inventory levels. Prices found further support after industry weather group MDA Federal predicted cold weather in the Northeast and below-normal weather in parts of the Midwest in the coming week. On the week, natural gas prices rallied 2.8%, the eighth consecutive weekly advance. On Thursday, the US Energy Information Administration said that natural gas storage fell by 14 billion cubic feet last week, compared to expectations for a drop of 13 billion cubic feet. Inventories increased by 11 billion cubic feet in the same week a year earlier, while the five-year average change for the week was a build of 15 billion cubic feet. Typically this time of year, stockpiles begin to climb as milder spring temperatures curb demand for natural gas. Total US natural gas storage stood at 1.673 trillion cubic feet as of last week, 32.5% lower than last year at this time and 3.8% below the five-year average for this time of year. Early injection estimates for this week’s storage data range from 16 billion cubic feet to 55 billion cubic feet. Inventories rose by 21 billion cubic feet in the same week a year earlier, while the five-year average change for the week is a rise of 39 billion cubic feet. Gas prices have risen sharply in recent weeks, gaining almost 30% since mid-February, boosted by calls for colder temperatures in major consuming regions across the US that helped tighten the market. For today's session market is looking to take support at 229.4, a break below could see a test of 227.6 and where as resistance is now likely to be seen at 233.1, a move above could see prices testing 235.