Naturalgas settled down -4.53% at 252.80 in the line of expectation after a bearish inventory report as well as weather forecasts for a thawing trend for much of the US. The U. S. Energy Information Administration said in its weekly report that natural gas storage in the U. S. in the week ended Jan. 3 fell by 157bcf, towards the lower end of expectations, especially in wake of a blast of cold air that sent temperatures falling to dangerously cold levels in many cities. Inventories fell by 191bcf in the same week a year earlier, while the five-year average change for the week is a decline of 131bcf. Total U. S. natural gas storage stood at 2.817 trillion cubic feet. Stocks were 528bcf less than last year at this time and 315bcf below the five-year average of 3.132 trillion cubic feet for this time of year. The report showed that in the East Region, stocks were 239bcf below the five-year average, following net withdrawals of 98bcf. Stocks in the Producing Region were 40bcf below the five-year average of 1.059bcf after a net withdrawal of 42bcf. Meanwhile, updated weather forecasting models called for a warming trend across much of the U. S. in the coming week, which sent prices lower. A fresh blast of cold air should return and edge out milder temperatures around Jan. 14, according to Natgasweather. com. Technically market is under long liquidation as market has witnessed drop in open interest by -25.28% to settled at 9830 while prices down -12 rupee, now Naturalgas is getting support at 248.5 and below same could see a test of 244.1 level, And resistance is now likely to be seen at 260.9, a move above could see prices testing 268.9.

Trading Ideas:

Naturalgas trading range for the day is 244.1-268.9.

Natural gas held on to losses after data showed that U. S. natural gas supplies fell broadly in line with market expectations last week.

The U. S. Energy Information Administration said in its weekly report that natural gas storage in the U. S. fell by 157 billion cubic feet

Stocks in the Producing Region were 40bcf below the five-year average of 1.059bcf after a net withdrawal of 42bcf.