Natural gas yesterday settled up by +1.86% at 219.20 extended previous day's gains on weather forecasts calling for rising temperatures in the western US and a late-season cold air mass gripping the northeastern portions of the country. Hotter weather in the southwestern US should ramp up demand for air conditioning, while colder-than-normal temperatures settling in for the heavily populated northeastern US should prompt businesses and households to crank up the heat. Both weather patterns allow natural gas prices to rise and offset bearish supply data released late last week. On Thursday, the US EIA said in its weekly report that natural gas storage in the US in the week ended May 3 rose by 88bcf, above expectations for an increase of 83bcf. Inventories rose by 30bcf in the same week a year earlier, while the five-year average change for the week is a rise of 69bcf. Total US natural gas storage stood at 1.865 trillion cubic feet as of last week. Stocks were 737bcf less than last year at this time and 99bcf below the five-year average of 1.964 trillion cubic feet for this time of year. Early injection estimates for this week's storage data range from 87bcf to 108bcf, compared to a more modest 56bcf increase during the same week a year earlier. Technically market is under fresh buying as market has witnessed gain in open interest by 10.1% to settled at 42412 while prices up by 4.00 rupee, now price getting support at 215.9 and below same could see a test of 212.6 level, And resistance is now likely to be seen at 221.1, a move above could see prices testing 223.

Trading Ideas:

Nat. Gas trading range for the day is 212.6-223.

Natural gas gained as forecasts pointing to cooler weather in Northeast in the coming week supported gains.

Gains were limited by a milder outlook for later in the month which could reduce demand.

Early injection estimates for this week's storage data range from 87 billion cubic feet to 108 billion cubic feet