Naturalgas settled up 0.65% at 231.3 after updated weather forecasting models called for above-normal temperatures to linger across much of the US into autumn. The US EIA said in its weekly report that natural gas stockpiles rose by 58bcf in the week ending Aug. 30, more than an expected 54 billion increase after a 67 billion rise the previous week. The numbers sent prices falling by stoking concerns supplies may be outstripping demand. By Monday, however, updated weather forecasting models pointed to above-normal temperatures to remain in place over much of the eastern half of the US though Sept. 23, which sent prices rising. Demand for natural gas tends to rise amid heat waves, as homes and businesses throttle up their air conditioners. Temperatures across much of the Midwest could surge, which sent prices gaining even further. The Weather Channel earlier said temperatures could rise into the upper 90s (Fahrenheit) across portions of the Midwest including Chicago this week. Prices found additional support after the US National Hurricane Center said Tropical Storm Humberto could become a hurricane by Wednesday. Energy traders track tropical storm activity in the event it disrupts production in the Gulf of Mexico, which is home to 10% of US natural gas production. Meanwhile, US supply levels also remained in focus. Total US natural gas storage stood at 3.188 trillion cubic feet as of last week, 1.4% above the five-year average and 6.2% below last year's unusually high level. Technically market is under short covering as market has witnessed drop in open interest by -2.24% to settled at 5992 while prices up 1.5 rupee, now Naturalgas is getting support at 229.5 and below same could see a test of 227.6 level, And resistance is now likely to be seen at 233.7, a move above could see prices testing 236.

Trading Ideas:

Naturalgas trading range for the day is 227.6-236.

Natural gas gains after updated weather forecasting models called for above-normal temperatures to linger across much of U. S. into autumn.

The numbers sent prices falling by stoking concerns supplies may be outstripping demand.

Tropical weather systems often disrupt production by prompting gas rig operators to evacuate offshore facilities.