Naturalgas settled up 3.87% at 244.10 as prices shot up after updated weather-forecasting models called below-normal temperatures to sweep across the northern U. S. and prompt households to crank up their heating. Thermal power plants may burn more natural gas this week to meet demand from households in the northern U. S. turning on their heaters. The southern and western U. S., meanwhile, will continue to see seasonably warm weather, which should hike demand for air conditioning, also bullish for natural gas.

A strong Canadian cold front is to due to sweep into the northern Rockies and head east in the coming days. "This much colder-than-normal weather system will gradually sweep deep into the central and eastern U. S. through Saturday while moderating a few degrees each day. This will bring temperatures 10-20°F cooler than normal to many regions as lows drop into the 30s and 40s over the northern U. S.," Natgasweather. com reported in its Sept. 9-15 forecast released earlier Tuesday. "The western U. S., including California, will be warmer than normal with highs reaching the upper 80s and 90s," Natgasweather. com added. Meanwhile, the U. S. EIA said in its weekly report last Thursday that natural gas storage in the U. S. rose by 79bcf in the week prior, surpassing expectations for an increase of 73bcf.

The five-year average change for the week is a build of 56bcf. Injections of gas into storage have surpassed the five-year average for 20 consecutive weeks, alleviating concerns over tightening supplies. Total U. S. natural gas storage stood at 2.709tcf as of last week, narrowing the deficit to the five-year average to 15.4% from 17% a week earlier and down from a record 54.7% at the end of March. Technically market is under short covering and getting support at 237.2 and below same could see a test of 230.2 level, And resistance is now likely to be seen at 248.1, a move above could see prices testing 252.

Trading Ideas:

Naturalgas trading range for the day is 230.2-252.

Natural gas rallied to a one-week high as forecasts showing colder-than-normal temperatures boosted near-term heating demand.

Bullish speculators are betting that colder weather will increase demand for the heating fuel.

Updated weather forecasting models pointed to cooler-than-normal temperatures in some states along the Canadian border over the next two weeks.