Naturalgas settled up 1.97% at 181.40 rose on Tuesday, as traders continued to weigh shifting weather forecasts to assess the outlook for U.S. demand and supply levels. Updated weather forecasting models showed that most parts of the southern U.S. will be engulfed by hot temperatures in the coming days. However, cooler weather was expected across most parts of the Great Lakes, Northeast and Midwest-regions as the week progresses. Summer heat has waned and cooler temperatures beckon with the approach of autumn. Natural gas accounts for about a quarter of U.S. electricity generation. According to the U.S. Energy Information Administration, natural gas storage rose by 94bcf last week. The data included a reclassification from working gas to base gas of 8bcf, which brought the number to 86bcf. Market had expected an increase of 88bcf last week. Supplies rose by 79bcf in the same week last year, while the five-year average change is an increase of 60bcf. Total U.S. natural gas storage stood at 3.193 trillion cubic feet, 18.3% higher than during the same week a year earlier and 4.0% above the five-year average for this time of year. Last spring, supplies were 55% below the five-year average, indicating producers have made up for all of last winter's unusually strong demand. The EIA's next storage report slated for release on Thursday, September 10 is expected to show a build of approximately 80bcf for the week ending September 4. Technically market is under short covering as market has witnessed drop in open interest by -1.02% to settled at 5656 while prices up 3.5 rupee, now Naturalgas is getting support at 179.1 and below same could see a test of 176.7 level, And resistance is now likely to be seen at 182.8, a move above could see prices testing 184.1.

Trading Ideas:

Naturalgas trading range for the day is 176.7-184.1.

Natural gas prices rose as traders continued to weigh shifting weather forecasts to assess the outlook for U.S. demand and supply levels.

MDA Weather Service and CWG forecasted below normal temperatures across major portions of the Midwest as well as the Chicago region.

In US Industrial consumption is forecast to rise 2.3% in 2015 and 5% in 2016 as a result of new projects coming online.