Naturalgas settled down -1.81% at 265.40 in the line of expectation fell after updated weather-forecasting models called for mild temperatures to settle in across much of the U.S. over the coming week, which should crimp demand for heating. Updated weather forecasting models called for seasonably mild weather over much of the Midwest and Northeast through May 21, which was likely to lower heating demand. Approximately 52% of U.S. households use natural gas for heating, according to the Energy Department. Mild springtime temperatures weren't forecast to rise high enough to hike demand for air conditioning, which would require power generators to burn more natural gas to meet demand. Elsewhere, investors braced for repeat bearish supply data. Last week, the U.S. EIA said that natural gas storage in the U.S. in the week ending May 2 rose by 74bcf, above forecasts for an increase of 71bcf. The numbers sent prices falling, as investors were betting that a recent cool snap would have hiked demand on expectations for demand for heating to rise. The five-year average change for the week is a build of 58bcf. Total U.S. natural gas storage stood at 1.055 trillion cubic feet. 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. Technically market is under long liquidation as market has witnessed drop in open interest by -15.49% to settled at 5807 while prices down -4.9 rupee, now Naturalgas is getting support at 263.6 and below same could see a test of 261.8 level, And resistance is now likely to be seen at 268.6, a move above could see prices testing 271.8.

Trading Ideas:

Naturalgas trading range for the day is 261.8-271.8.

Naturalgas fell after updated weather-forecasting models called for mild temperatures to settle in across much of the U.S. over the coming week.

Updated weather forecasting models called for seasonably mild weather through May 21, which was likely to lower heating demand.

Last week, the U.S. EIA said that natural gas storage in the U.S. in the week ending May 2 rose by 74bcf, above forecasts.