Naturalgas settled up 1.36% at 179.30 extended gains on Thursday, after data showed that U.S. natural gas supplies rose less than expected last week. The US EIA said in its weekly report that natural gas storage in the U.S. in the week ended September 4 rose by 68 billion cubic feet, below expectations for an increase of 75 billion. That compared with builds of 86 billion cubic feet in the prior week, 90 billion cubic feet in the same week last year, while the five-year average change for the week is an increase of 63bcf. Total U.S. natural gas storage stood at 3.261 trillion cubic feet as of last week. Stocks were 473 billion cubic feet higher than last year at this time and 127 billion cubic feet above the five-year average of 3.134 trillion cubic feet for this time of year. A day earlier, natural gas prices lost 5.9 cents, or 2.18%, as market players weighed 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. Technically market is under short covering as market has witnessed drop in open interest by -33.98% to settled at 5237 while prices up 2.4 rupee, now Naturalgas is getting support at 177 and below same could see a test of 174.8 level, And resistance is now likely to be seen at 182, a move above could see prices testing 184.8.

Trading Ideas:

Naturalgas trading range for the day is 174.8-184.8.

Natural gas extended gains after data showed that U.S. natural gas supplies rose less than expected last week.

The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. rose by 68 billion cubic feet.

Total U.S. natural gas storage stood at 3.261 trillion cubic feet as of last week.