Naturalgas settled up 0.18% at 279 after updated weather forecasting models called or warm, summertime temperatures to settle in across much of the U. S. in the coming days, though Thursday's bearish supply report continued to weigh on the commodity. Updated weather-forecasting models called for above-normal temperatures to settle in across parts of the U. S. in the coming week, which should hike demand for air conditioning, though pockets of milder temperatures forecast for the northeast capped gains as did Thursday's bearish supply report. The U. S. Energy Information Administration said in its weekly report Thursday that natural gas storage in the U. S. in the week ended May 30 rose by 119 billion cubic feet, above forecasts for an increase of 116 billion cubic feet. Total U. S. natural gas storage stood at 1.499 trillion cubic feet. Stocks were 737 billion cubic feet less than last year at this time and 896 billion cubic feet below the five-year average of 2.395 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. However, as summer season sets in and temperatures rise, air conditioning will become more intense, pushing up power demand, which could hurt natgas supplies and support price levels. Technically market is under short covering as market has witnessed drop in open interest by -1.03% to settled at 8971 while prices up 0.5 rupee, now Naturalgas is getting support at 276.8 and below same could see a test of 274.6 level, And resistance is now likely to be seen at 280.8, a move above could see prices testing 282.6.

Trading Ideas:

Naturalgas trading range for the day is 274.6-282.6.

Natural gas seen supported after updated weather forecasting models called or warm, summertime temperatures to settle in coming days.

The U. S. Energy Information Administration said in its weekly report that natural gas storage rose by 119 billion cubic feet.

Producers would need to add approximately 2.5 trillion cubic feet to storage by November 1 to meet typical winter demand.