Naturalgas settled down -0.86% at 276.60 as backed off one-month highs on Monday as cooler weather across many regions of the U.S. looked likely to crimp demand from power plants. Most forecasts on Monday said the Midwest and Texas would see cooler-than-average temperatures over the next five days, while the East and West coasts would experience warmer than normal conditions. Power plants account for 31% of gas consumption, according to the Energy Information Administration, the Energy Department’s statistical arm. Last week the EIA reported that natural gas stockpiles in the week ended May 30 rose by 119bcf. Total stocks now stand at 1.499 trillion cubic feet, down 737 billion cubic feet from a year ago and 896 billion cubic feet below the five-year average, the government said. Producers typically replenish inventories between April and October, when demand is lower. Lastweek Natural gas was moving higher in the first three days of the week as updated  weather forecasts pointed to above-normal temperatures in the most U.S. territory through the week. However, weekly EIA data released on Thursday stopped a climb of natural gas prices. Natural gas supplies advanced 119 bcf, surpassing a forecast of a 116-billion-cubic-feet rise. Nevertheless, total inventory numbers remained bullish – total U.S. supplies were at 1.499 trillion cubic feet, by 737 billion cubic feet down year-on-year and 896bcf less than the five-year average. Technically market is under long liquidation as market has witnessed drop in open interest by -10.82% to settled at 8000 while prices down -2.4 rupee, now Naturalgas is getting support at 274.7 and below same could see a test of 272.7 level, And resistance is now likely to be seen at 279.7, a move above could see prices testing 282.7.

Trading Ideas:

Naturalgas trading range for the day is 272.7-282.7.

Natural gas dropped as cooler weather across many regions of the U.S. looked likely to crimp demand from power plants.

Most forecasts said the Midwest and Texas would see cooler-than-average temperatures over the next five days.

Last week the EIA reported that natural gas stockpiles in the week ended May 30 rose by 119 billion cubic feet.