Naturalgas settled down -1.49% at 231.9 after updated weather-forecasting models suggested a tropical low could intensify into a cyclone but would likely remain in the Atlantic Ocean and veer away from the Gulf of Mexico. Tropical weather systems in the Gulf of Mexico often send prices rising, as rigs are evacuated and supply slows. A low-pressure system in the western Atlantic Ocean appeared poised to develop into a tropical cyclone, with the National Hurricane Center giving the storm a 60% chance of becoming a tropical depression in 48 hours and a 80% chance in 5 days. Still, the latest model runs at the time of writing appeared to keep the system in the Atlantic Ocean and out of the gas-rich Gulf of Mexico, which allowed natural prices to soften on Friday. The U. S. Energy Information Administration said in its weekly report that natural gas storage in the U. S. in the week ended Aug. 15 rose by 88 billion cubic feet, surpassing expectations for an increase of 83 billion cubic feet, which sent prices falling earlier Thursday. Inventories rose by 58 billion cubic feet in the same week a year earlier, while the five-year average change is a build of 48 billion cubic feet. Injections of gas into storage have surpassed the five-year average for 18 consecutive weeks, alleviating concerns over tightening supplies. Technically market is under long liquidation as market has witnessed drop in open interest by -4.57% to settled at 6405 while prices down -3.5 rupee, now Naturalgas is getting support at 230.3 and below same could see a test of 228.7 level, And resistance is now likely to be seen at 234.7, a move above could see prices testing 237.5.

Trading Ideas:

Naturalgas trading range for the day is 228.7-237.5.

Natural gas dropped after updated weather-forecasting models suggested a tropical low could intensify into a cyclone but would likely remain in the Atlantic Ocean.

Tropical weather systems in the Gulf of Mexico often send prices rising, as rigs are evacuated and supply slows.

The U. S. EIA said in its weekly report that natural gas storage rose by 88 billion cubic feet, surpassing expectations.