Naturalgas settled up 0.4% at 250.1 after bargain hunters snapped up nicely-priced positions in the commodity and reversed losses stemming from Thursday's bearish supply report. The U. S. Energy Information Administration said in its weekly report on Thursday that natural gas storage in the U. S. in the week ending July 4 rose by 93 billion cubic feet, above expectations for an increase of 92 billion cubic feet. The five-year average change for the week is an increase of 72 billion cubic feet.

Total U. S. natural gas storage stood at 2.022 trillion cubic feet. Stocks were 653 billion cubic feet less than last year at this time and 769 billion cubic feet below the five-year average of 2.791 trillion cubic feet for this time of year. Gas prices fell on the numbers as well as weather forecasts calling for below-normal temperatures across portions of the eastern half of the U. S., though bottom fishers sent the commodity back into positive territory on Friday. A frigid winter had depleted natural-gas inventories, raising questions about whether producers could replace those stockpiles before temperatures drop again. The steady rise of North American oil-and-gas production has diminished those threats, calming energy markets to a degree that investors and analysts say would have been hard to imagine even five years ago.

U. S. gas producers are refilling storage at a record pace, including a bigger-than-expected increase to inventories in government data released Thursday. Technically market is under short covering as market has witnessed drop in open interest by -6.36% to settled at 8173 while prices up 1 rupee, now Naturalgas is getting support at 248.2 and below same could see a test of 246.3 level, And resistance is now likely to be seen at 251.3, a move above could see prices testing 252.5.

Trading Ideas:

Naturalgas trading range for the day is 246.3-252.5.

Naturalgas settled up after bargain hunters snapped up nicely-priced positions and reversed losses stemming from Thursday's supply report.

Prices seen under pressure on the numbers as well as weather forecasts calling for below-normal temperatures.

A frigid winter had depleted natural-gas inventories, raising questions about whether producers could replace those stockpiles.