Natural gas settled down -5.53% at 302.6 after updated weather-forecasting models called for milder temperatures to return to the U. S. in February and curb demand for heating in the country's homes and businesses. Recent blasts of frigid air sweeping across the U. S. will give way to milder temperatures in February and prompt homes and businesses to scale back on their heating. Updated weather-forecasting models called for below-normal temperatures in pockets of the northern U. S. in early February, though the rest of the country could see milder temperatures, which should prompt thermal power producers to cut back on their demand for natural gas. The U. S. Energy Information Administration said in its weekly report that natural gas storage in the U. S. in the week ended Jam. 24 fell by 230 billion cubic feet, missing expectations for a decline of 236 billion cubic feet. Gas supplies fell by 191 billion cubic feet during the same week a year earlier, while the five-year average change for the week is a decline of 162 billion cubic feet. Total U. S. natural gas storage stood at 2.193 trillion cubic feet. Stocks were 637 billion cubic feet less than last year at this time and 437 billion cubic feet below the five-year average of 2.630 trillion cubic feet for this time of year. The report showed that in the East Region, stocks were 269 billion cubic feet below the five-year average, following net withdrawals of 124 billion cubic feet. Stocks in the Producing Region were 121 billion cubic feet below the five-year average of 924 billion cubic feet after a net withdrawal of 84 billion cubic feet. Now Natural gas is getting support at 292.7 and below same could see a test of 282.7 level, And resistance is now likely to be seen at 314.4, a move above could see prices testing 326.1.

Trading Ideas:

Naturalgas trading range for the day is 282.7-326.1.

Natural gas dropped after updated weather-forecasting models called for milder temperatures to return to the U. S. in February

Updated weather-forecasting models called for below-normal temperatures in pockets of the northern U. S. in early February.

Total U. S. natural gas storage stood at 2.193 trillion cubic feet.