Natural Gas settled flat as investors readjusted positions ahead of Thursday’s closely-watched supply report to gauge the strength of cooling demand. Natural gas stockpiles have grown by 100 or more billion cubic feet for eight consecutive weeks, a record streak since 1994. 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. Meanwhile, updated weather-forecasting models called for cooler temperatures across most parts of the heavily-populated Midwest and Northeast regions over the next five days, dampening demand for gas-fired electricity to power air conditioning. Demand for natural gas tends to fluctuate in the summer based on hot weather and air conditioning use. Thursday’s government report was expected to show that natural gas storage in the U.S. rose by 92 billion cubic feet in the week ended July 4. The five-year average increase for the period is 72 billion. Bargain hunters sent prices back into the positive territory, as typical summertime temperatures should return and hike demand for air conditioning, thus prompting thermal power producers to burn more of the commodity to meet demand. In its July 9-15 forecast, Natgasweather.com reported that a Canadian weather system will bring showers, thunderstorms and cooler temperatures to the Midwest and New England in the coming days, while hot temperatures will prevail over the southern and western U.S. Technically market is under short covering as market has witnessed drop in open interest by -2.67% to settled at 8064 while prices up 0.1 rupee, now Naturalgas is getting support at 250.3 and below same could see a test of 248.8 level, And resistance is now likely to be seen at 253.5, a move above could see prices testing 255.2.

Trading Ideas:

Naturalgas trading range for the day is 248.8-255.2.

Natural gas gains as investors readjusted positions ahead of closely-watched supply report to gauge the strength of cooling demand.

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

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.