Naturalgas settled down -1.21% at 277 in the line of expectation fell to a one-week low after data showed that U.S. natural gas supplies rose more than expected last week. The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended June 13 rose by 113 billion cubic feet, above forecasts for an increase of 110 billion cubic feet. Stockpiles increased by 92 billion cubic feet in the same week a year earlier, while the five-year average build for the week is 87 billion. Total U.S. natural gas storage stood at 1.719 trillion cubic feet. Stocks were 706 billion cubic feet less than last year at this time and 851 billion cubic feet below the five-year average of 2.570 trillion cubic feet for this time of year. Producers would need to add approximately 2.6 trillion cubic feet to storage by November 1 to meet typical winter demand. Meanwhile, updated weather-forecasting models showed that warmer weather was expected in the U.S. Central and East over the next five days before cooling in the East over the next six-to-10 days. 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. Technically market is under long liquidation as market has witnessed drop in open interest by -22.3% to settled at 4668 while prices down -3.4 rupee, now Naturalgas is getting support at 274 and below same could see a test of 271 level, And resistance is now likely to be seen at 281.4, a move above could see prices testing 285.8.

Trading Ideas:

Naturalgas trading range for the day is 271-285.8.

Natural gas prices fell after data revealed that U.S. inventories rose more than expected last week.

The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. rose by 113 billion cubic feet.

Stockpiles increased by 92 billion cubic feet in the same week a year earlier, while the five-year average build for the week is 87 billion.