Naturalgas settled down -0.36% at 248.10 traded near a six-month low on Tuesday, as cooler than expected summer weather was expected to limit demand for the fuel. A weather system similar to the Polar Vortex from last winter will bring below-normal temperatures to the U.S. Midwest and head east this week, which sent natural gas prices dipping on Tuesday. In its July 15-21 weather forecast summary, Natgasweather.com reported that the strong Canadian blast of cool air moving across the central and eastern US with the cold front will bring highs reaching only into 60s and 70s in its wake. Temperatures will be 8-20?F cooler than normal over a good chunk of the eastern half of the U.S., while overnight lows will drop into the upper 40s and 50s across the upper Midwest. Below-normal temperatures this time of year cut into demand for air conditioning, which curbs demand for natural gas, though prices didn't plummet, as warmer air will prevail elsewhere. "Over the western and extreme southern U.S., high pressure will hold strong and continue to bring hot temperatures with highs warming into the 90s and 100s along with afternoon monsoon thunderstorms," Natgasweather.com reported. "High pressure will begin to strengthen this weekend in the wake of the departing low. This will allow temperatures in the 80s and lower 90s to surge into much of the northern U.S. with mid 90s and 100s setting up over the southern U.S." Meanwhile, concerns over tight supplies continued to fade away after weekly supply data released last week showed that utilities in the U.S. added 93bcf of gas into storage in the week ended July 4. Technically market is under fresh selling and getting support at 247 and below same could see a test of 245.8 level, And resistance is now likely to be seen at 249.9, a move above could see prices testing 251.6.

Trading Ideas:

Naturalgas trading range for the day is 245.8-251.6.

Natural gas dropped as cooler than expected summer weather was expected to limit demand for the fuel.

Updated weather-forecasting models called for cooler temperatures across most parts over the next five days.

Concerns over tight supplies continued to fade away after weekly supply data showed that utilities 93 bcf of gas into storage last week.