Naturalgas settled down -1.85% at 270.30 amid easing concerns over tight supplies. The U.S. Energy Information Administration said in its weekly report published Thursday that natural gas storage in the U.S. rose by 74bcf, above forecasts for an increase of 71bcf. The five-year average change for the week is a build of 72bcf. The government report showed a bigger-than-expected storage build for the third week in a row, helping to ease worries about tight inventories. Total U.S. natural gas storage stood at an 11-year low of 1.055 trillion cubic feet as of last week. Stocks were 797bcf less than last year at this time and 982bcf below the five-year average of 2.037 trillion cubic feet for this time of year. Producers would need to add 2.6 trillion to 2.9tcf to storage by November 1 to meet typical winter demand. Meanwhile, updated weather forecasting models called for warmer-than-average weather over much of the Midwest and Northeast, as well as the South, which was likely to lower heating demand. Spring and fall see the weakest demand for natural gas in the U.S, as the absence of extreme temperatures curbs demand for heating and air conditioning. Approximately 52% of U.S. households use natural gas for heating, according to the Energy Department. Data from the CFTC released Friday showed that hedge funds and money managers decreased their bullish bets in natural gas futures in the week ending May 6. Net longs totaled 109,334 contracts, down 3.4% from net longs of 113,192 in the previous week. Technically market is under long liquidation and getting support at 267.9 and below same could see a test of 265.6 level, And resistance is now likely to be seen at 274.6, a move above could see prices testing 279.

Trading Ideas:

Naturalgas trading range for the day is 265.6-279.

Naturalgas settled down as investors avoided the commodity after data revealed that stockpiles rose more than expected last week.

Natural gas inventories are rising again, but remain well below the bottom of the five-year range.

Since April, production has been outpacing demand, which is helping to rebuild supplies.