Naturalgas settled down -2.02% at 228.30 while market rallied in the earlier session after data showed that U. S. natural gas supplies fell more than forecast last week. The U. S. EIA said in its weekly report that natural gas storage in the U. S. in the week ended December 5 fell by 51bcf, more than expectations for a decline of 45 billion and compared to a drop of 22 billion in the previous week. Inventories fell by 92bcf in the same week a year earlier, while the five-year average change is a drop of 72bcf. Total U. S. natural gas storage stood at 3.359tcf. Stocks were 186bcf less than last year at this time and 351bcf below the five-year average of 3.710tcf for this time of year. Gains were limited due to forecasts for mild temperatures, which should curb demand for heating. While several winter weather systems will trek across the U. S. in the coming days, frigid temperatures should hover north of the Canadian border. "While we mention all these weather systems, what we have yet to mention is how they are quite mild in nature, as the truly cold Arctic air will remain confined to far northern Canada and also where they are not tracking through, temperature anomalies are running 10-20F warmer than normal, such as over Texas and the central U. S.," Natgasweather. com reported in its Thursday Midday Update. "With cold Canadian air absent, next week's draw will be show a much greater miss on the 5-year average compared to today's report. Technically market is getting support at 224.4 and below same could see a test of 220.4 level, And resistance is now likely to be seen at 234.7, a move above could see prices testing 241.

Trading Ideas:

Naturalgas trading range for the day is 220.4-241.

Natural gas rallied sharply after data showed that U. S. natural gas supplies fell more than forecast last week.

U. S. EIA said in its weekly report that natural gas storage fell by 51 billion cubic feet, more than expectations for a decline of 45 billion.

Inventories fell by 92 billion cubic feet in the same week a year earlier, while the five-year average change is a drop of 72 billion cubic feet.