Naturalgas settled up 0.46% at 242.70 traded near a two-week high on Tuesday, as expectations of warmer-than-usual weather into September boosted hopes for natural gas demand. Updated weather forecasting models showed that above-normal temperatures will blanket most parts of the eastern and central U.S. through September 4. Demand for natural gas tends to fluctuate in the summer based on hot weather and air conditioning use. Meanwhile, the U.S. Energy Information Administration said in its weekly report on August 22 that natural gas storage in the U.S. rose by 88 billion cubic feet last week, above expectations for an increase of 83 billion cubic feet. 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. Total U.S. natural gas storage stood at 2.555 trillion cubic feet as of last week, narrowing the deficit to the five-year average to 17.3% from 18.9% a week earlier and down from a record 54.7% at the end of March. The EIA's next storage report is slated for release on Thursday, August 28, with analysts expecting a build of 76 billion cubic feet for the week ending August 22. Inventories rose by 65 billion cubic feet in the same week a year earlier, while the five-year average change is a build of 58 billion cubic feet. Technically market is under fresh buying as market has witnessed gain in open interest by 83.78% to settled at 5914, now Naturalgas is getting support at 240.5 and below same could see a test of 238.3 level, And resistance is now likely to be seen at 244.7, a move above could see prices testing 246.7.

Trading Ideas:

Naturalgas trading range for the day is 238.3-246.7.

Natural gas prices carried gains on expectations that warm summertime temperatures will hike demand for air conditioning.

Supply uncertainty, however, allowed for choppy trading and pushed prices into negative territory at times.

Inventories rose by 58 bcf in the same week a year earlier, while the five-year average change is a build of 48 bcf.