Naturalgas settled up 3.37% at 318.70 shot up on Thursday after a weekly U.S. supply report revealed cold winter weather has taken its toll on the country's stockpiles. A series of powerful winter storms have prompted homes and business to ramp up on their heating, thus hiking demand for natural gas at the country's thermal power plants, weekly supply data released earlier revealed. The U.S. EIA said in its weekly report that natural gas storage in the U.S. in the week ended Feb. 7 fell by 237bcf, outpacing already bullish expectations for a decline of 233bcf. The five-year average change for the week is a decline of 162bcf. Total U.S. natural gas storage stood at 1.686tcf. Stocks were 863bcf less than last year at this time and 631bcf below the five-year average of 2.317tcf for this time of year. The report showed that in the East Region, stocks were 315bcf below the five-year average, following net withdrawals of 106bcf. Stocks in the Producing Region were 232bcf below the five-year average of 845bcf after a net withdrawal of 89bcf. Meanwhile, freezing temperatures and heavy snow were expected across parts of the eastern U.S., which added to the rally. Bullish speculators are betting that the winter storm will increase demand for the heating fuel. Technically market is under fresh buying as market has witnessed gain in open interest by 22.67% to settled at 10930 while prices up 10.4 rupee, now Naturalgas is getting support at 308.2 and below same could see a test of 297.6 level, And resistance is now likely to be seen at 324.9, a move above could see prices testing 331.

Trading Ideas:

Naturalgas trading range for the day is 297.6-331.

Natural gas rose after a weekly U.S. supply report revealed cold winter weather has taken its toll on the country's stockpiles.

The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. fell by 237 billion cubic feet.

Meanwhile, freezing temperatures and heavy snow were expected across parts of the eastern U.S., which added to the rally.