Naturalgas settled down -0.63% at 251.2 as firmness in rupee weighed but downside was limited on speculation that a recent blast of arctic air will take its toll on U. S. inventories, while forecasts for a warming trend to end soon also pressured prices higher. Meanwhile, updated weather forecasting models called for a warming trend across much of the U. S. to end next week. A fresh blast of cold air should return and edge out milder temperatures around Jan. 14, according to Natgasweather. com. 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 157 billion cubic feet, 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 191 billion cubic feet in the same week a year earlier, while the five-year average change for the week is a decline of 131 billion cubic feet. Early estimates for the weekly storage draw for this week range from 222 bcf to 286 bcf, which at the high end would top the 285 bcf record draw set in December. MDA Weather Services forecast very warm weather over much of the United States over the next five days and moderately warmer weather over the 11 to 15 day outlook after a record arctic blast earlier this week. Now Naturalgas is getting support at 246.8 and below same could see a test of 242.3 level, And resistance is now likely to be seen at 254.4, a move above could see prices testing 257.5.

Trading Ideas:

Naturalgas trading range for the day is 242.3-257.5.

Naturalgas dropped as firmness in rupee weighed amid on forecasts for milder weather and expected lower heating demand over the next few weeks.

Meanwhile, updated weather forecasting models called for a warming trend across much of the U. S. to end next week.

Prices recovered some of losses on sentiments that the cold air mass will reflect more in next week's inventory report, which gave the commodity room to rise.