Naturalgas settled down -2.64% at 269.30 after updated weather-forecasting models predicted that a storm system trekking across the central and eastern U. S. will bring damp and cooler temperatures that should cut into demand for air conditioning. A storm system tracking across the south-central U. S. dumping showers will gradually move east over the coming days and bring with it mild, wet conditions, which should crimp demand for air conditioning. Mild temperatures should hover over much of the U. S. over the next 6days, Natgasweather. com reported, though high pressure should settle in afterwards and bring warmer temperatures over the southern U. S. Elsewhere, markets continued to digest Thursday's U. S. inventory report. Meanwhile, market players continued to assess the outlook for U. S. supply levels. Utilities added 119bcf of gas into storage last week, the largest weekly injection since 2009. Total U. S. natural gas storage stood at 1.499tcf as of last week, nearly 33% below their level this time last year and 37% below the five-year average. Producers would need to add approximately 2.5tcf to storage by November 1 to meet typical winter demand. 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. Technically market is under long liquidation as market has witnessed drop in open interest by -18.79% to settled at 6497 while prices down -7.3 rupee, now Naturalgas is getting support at 266.8 and below same could see a test of 264.2 level, And resistance is now likely to be seen at 274, a move above could see prices testing 278.6.

Trading Ideas:

Naturalgas trading range for the day is 264.2-278.6.

Natural gas extended losses as mild weather forecasts weighed on near-term demand expectations for the fuel.

Meanwhile, market players continued to assess the outlook for U. S. supply levels.

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