Natural gas yesterday settled down by -1.9% at 237.70 came under heavy selling pressure during U. S. morning trade on Tuesday, following a long holiday weekend as traders readjusted positions ahead of the expiration of the front-month June contract. The May contract was due to expire at the end of Tuesday's trading session. Contract expiration often leads to volatile sessions as market participants look to close out positions or reposition their portfolios. Natural gas futures rallied to a four-week high on Monday, as prices were boosted by a warmer-than-normal weather outlook that was expected to increase demand for the fuel. Natural gas futures have been well-supported in recent weeks as updated weather forecasting models pointed to a wider swath of above-normal temperatures across most parts of the U. S., boosting near-term cooling demand expectations. According to weather service provider AccuWeather, the high in New York City on May 31 may be 86 degrees Fahrenheit, or 30 Celsius, 11 degrees above normal. Demand for natural gas tends to rise in the summer months as warmer temperatures increase the need for gas-fired electricity to power air conditioning. US supply levels also remained in focus. The U. S. Energy Information Administration said last week that natural gas storage in the U. S. rose by
89bcf, below expectations for an increase of 91bcf. Now Natural gas is getting support at 234.1 and below same could see a test of 230.5 level, And resistance is now likely to be seen at 241.4, a move above could see prices testing 245.1.

Trading Ideas:

Nat. Gas trading range for the day is 230.5-245.1.

Natural gas dropped as forecasts for below-normal temperatures in June indicated uncertain demand in the coming weeks.

Fairly mild weather expected for the next two weeks should curb late-season heating and early-season cooling demand

Prices have been well-supported in recent weeks as updated weather forecasting models pointed to a wider swath of above-normal temperatures