Naturalgas settled up 3.96% at 273.30 rose sharply on Tuesday, as frigid winter temperatures and heavy snow was expected across most parts of the U. S. Northeast in the coming days. Updated weather forecasting models called for severe cold weather across the eastern U. S. during the next three-to-five days, with heavy snow expected in the Northeast and New England. Cities in the Northeast could get 8 to 10 inches of snow with gusty winds and ice cold temperatures, while across the country temperatures will plummet each day through Sunday. The U. S. Northeast is a key gas-heating area. Bullish speculators are betting that colder weather will increase demand for the heating fuel. The heating season from November through March is the peak demand period for U. S. gas consumption. Approximately 52% of U. S. households use natural gas for heating, according to the Energy Department. U. S. supply levels also remained in focus. Natural gas supplies dropped by a record-high 287 billion cubic feet last week to 2.530 trillion cubic feet, approximately 15% below the five-year average for this time of year. The previous record drop was a decrease of 285 billion cubic feet in the seven days ended December 13, EIA data show. Natural gas inventories have fallen by 1.3 trillion cubic feet, or 34%, since November 8 as frigid winter temperatures in the U. S. led households to burn a higher than normal amount of the fuel in furnaces to heat their homes. Technically market is under fresh buying as market has witnessed gain in open interest by 21.17% to settled at 15078 while prices up 10.4 rupee, now Naturalgas is getting support at 266.1 and below same could see a test of 258.9 level, And resistance is now likely to be seen at 278.1, a move above could see prices testing 282.9.

Trading Ideas:

Naturalgas trading range for the day is 258.9-282.9.

Natural gas gained as frigid winter temperatures and heavy snow was expected across most parts of the U. S. Northeast in the coming days.

Bullish speculators are betting that colder weather will increase demand for the heating fuel.

Updated weather forecasting models called for severe cold weather across the eastern U. S. during the next three-to-five days.