Naturalgas settled up 1.37% at 273.2 after updated weather forecasting models called for cold air to keep its grip across the central and eastern U. S., though a bearish supply report capped the commodity's gains albeit slightly. A winter storm system that dumped snow across the central and northeastern U. S. will leave frigid temperatures in its wake, which should hike demand for natural gas at the country's thermal power plants as homes and businesses crank up their heating. Uncertainty as to how far south that cold air mass may sweep capped gains as did bearish supply data, though slightly. The Energy Information Administration reported earlier that U. S. Natural Gas Storage fell by a seasonally adjusted annual rate of 97 billion cubic feet compared to a drop of 177 billion cubic feet in the preceding week. Natgasweather. com reported in its 8-14 outlook that while moderate temperatures will return, they may be back for about a week when a fresh blast of cold air returns, which should hike demand for the commodity. The National Weather Service's most recent forecasts on Friday came in "quite a bit colder" toward the middle of January, particularly over the upper Midwest, said Steve Silver, a meteorologist with forecaster MDA Weather Services. Natural-gas use typically rises in winter as cold weather sparks greater demand to heat homes and businesses, and traders keep a close watch on shifts in the weather outlook. Now Naturalgas is getting support at 266 and below same could see a test of 258.8 level, And resistance is now likely to be seen at 277.6, a move above could see prices testing 282.

Trading Ideas:

Naturalgas trading range for the day is 258.8-282.

Natural gas rose after updated weather forecasting models called for cold air to keep its grip across the central and eastern U. S.

A winter storm system that dumped snow across the central and northeastern U. S. will leave frigid temperatures in its wake, which should hike demand

Energy Information Administration reported earlier that U. S. Natural Gas Storage fell by a seasonally adjusted annual rate of 97 billion cubic feet