Natural Gas settled down -3.32% at 253.50 fell to the lowest level in three months on Monday, as market players continued to assess the outlook for U. S. demand and supply levels. Concerns over tight supplies continued to fade away after weekly supply data released last week showed that utilities in the U. S. added 100bcf of gas into storage in the week ended June 20. The five-year average change for the week is an increase of 68bcf. Total U. S. natural gas storage stood at 1.929 trillion cubic feet as of last week, 25.7% below their level this time last year and 29.1% below the five-year average. Natural gas stockpiles have grown by 100 or more bcf for eight consecutive weeks, a record streak since 1994. Investors sold natural gas positions and jumped to the sidelines to prep for Thursday's supply report, with concerns brewing the numbers will show soft demand. The U. S. Energy Information Administration said in its weekly report last week that natural gas storage in the U. S. in the week ending on June 27 rose by 100bcf, in line with expectations. Producers would need to add approximately 2.6tcf to storage by November 1 to meet typical winter demand, according to market expectation. Weather forecasting models softened prices as well. Warmer weather will push out a brief cool snap over the U. S., though updated forecasts wouldn't rule out the possibility of another cooling period across reaches of the heavily populated Midwest in the coming days. Technically market is under fresh selling as market has witnessed gain in open interest by 24.17% to settled at 9221 while prices down -8.7 rupee, now Natural gas is getting support at 250.3 and below same could see a test of 247.1 level, And resistance is now likely to be seen at 259.2, a move above could see prices testing 264.90.

Naturalgas trading range for the day is 247.1-264.9.

Natural gas dropped more that -3% on concerns that this week's supply report will show soft demand for the commodity.

Investors sold natural gas positions and jumped to the sidelines to prep for Thursday's supply report, with concerns brewing the numbers will show soft demand.

Natural gas stockpiles have grown by 100 or more billion cubic feet for eight consecutive weeks, a record streak since 1994.

Warmer weather will push out a brief cool snap over the U. S., though updated forecasts wouldn't rule out the possibility of another cooling period.

SELL NAT GAS JULY @ 256 SL 259.50 TGT 252.50-248.50.MCX