Natural gas settled down -0.22% at 271.2 as prices carried losses after official data revealed U. S. stockpiles rose more than markets were expecting last week. The U. S. Energy Information Administration said in its weekly report on Thursday that natural gas storage in the U. S. in the week ended May 23 rose by 114bcf, above forecasts for an increase of 110bcf. Inventories rose by 88bcf in the same week a year earlier, while the five-year average change for the week is a build of 93bcf. Total U. S. natural gas storage stood at 1.380 trillion cubic feet. Stocks were 748bcf less than last year at this time and 922bcf below the five-year average of 2.302 trillion cubic feet for this time of year. Producers would need to add approximately 2.5 trillion cubic feet to storage by November 1 to meet typical winter demand. Demand for natural gas tends to rise in the summer months as warmer temperatures increase the need for gas-fired electricity to power air conditioning. Meanwhile, market players prepped for the arrival of summertime temperatures in the U. S., which should hike demand for air conditioning. Updated weather-forecasting models called for above-normal temperatures to settle in across parts of the lower 48 U. S. states through the first week of June, which sent natural gas prices rising, though Thursday's supply data sparked a round of profit taking that carried into Friday. Technically market is under long liquidation as market has witnessed drop in open interest by -14.22% to settled at 6540, now Natural gas is getting support at 267.5 and below same could see a test of 263.8 level, And resistance is now likely to be seen at 273.7, a move above could see prices testing 276.2.

Trading Ideas:

Naturalgas trading range for the day is 263.8-276.2.

Natural gas settled down after official data revealed U. S. stockpiles rose more than markets were expecting last week.

The U. S. EIA said in its weekly report that natural gas storage in the U. S. in the week ended May 23 rose by 114 billion cubic feet.

Meanwhile, market players prepped for the arrival of summertime temperatures in the U. S., which should hike demand.