Naturalgas settled down -2.41% at 177.9 as moderating heat forecast for the U. S. will cut air conditioner use and fuel demand from power plants. Gains in gas inventories will accelerate in the coming weeks with the waning summer heat, pressuring prices. Surging production has helped stockpiles climb 21 percent faster than the five-year average since inventories began a seasonal increase in April. Prices will bottom out in the fall, slumping to a range of $2.55 to $2.70, as inventories head toward record levels. Gas futures have traded mostly between $2.60 and $2.95 since the start of the third quarter. Gas stockpiles have expanded by 1.569 trillion cubic feet from the end of March to 3.03 trillion cubic feet on Aug. 14, a U. S. Energy Information Administration report Thursday showed. The five-year average for the same period is 1.299 trillion. Inventories are on track to reach close to 4 trillion cubic feet by the end of the stockpiling season in the fall. That would surpass the record of 3.929 trillion reached in November 2012. Gas production is hovering near all-time highs. Output, based on wellhead data, was 80.43 billion cubic feet a day in the week ended Aug. 13 versus the record 80.48 billion reached in April, LCI Energy Insight data show. Gains this year have been driven by new wells and pipeline capacity coming online at the Marcellus deposit in the eastern U. S., according to the EIA. Technically market is under fresh selling as market has witnessed gain in open interest by 5.61% to settled at 4368 while prices down -4.4 rupee, now Naturalgas is getting support at 176.1 and below same could see a test of 174.4 level, And resistance is now likely to be seen at 180.7, a move above could see prices testing 183.6.

Trading Ideas:

Naturalgas trading range for the day is 174.4-183.6.

Natural gas prices ended with losses as moderating heat forecast for the U. S. will cut air conditioner use and fuel demand from power plants.

Gains in gas inventories will accelerate in the coming weeks with the waning summer heat, pressuring prices.

Surging production has helped stockpiles climb 21 percent faster than the five-year average since inventories began a seasonal increase in April.