Naturalgas on MCX settled up 1.24% at 195.90 prices rose to a 2 1/2-month high flipping up from losses after data showed a below-average storage addition last week. Support has been seen from the US EIA said natural-gas stockpiles grew by 62bcf last week against the expectation of 66 bcf, it is lower than both last year’s addition and the five-year average addition for this week of the year. That compared with a gain of 36bcf in the preceding week, 74 billion a year earlier and a five-year average build of 69bcf. Total U.S. natural gas storage stood at 3.499tcf, 5.3% higher than levels at this time a year ago and 8.6% above the five-year average for this time of year. On Wednesday, gas futures surged to a more than two-month high of $2.978 amid forecasts for warmer than normal temperatures across most parts of the continental U.S. in the days ahead. Despite the recent rally, gains are likely to remain limited as traders react to the reality that higher summer demand for the commodity is coming to an end. Demand for natural gas tends to rise in the summer months as warmer temperatures increase the need for gas-fired electricity to power air conditioning. But with autumn due to start on September 22, power burns to feed air conditioning demand have probably peaked for now.Overall, nat gas demand will be LOW over the northern US and MODERATE to HIGH over the southern US. Technically market is under fresh buying getting support at 191.6 and below same could see a test of 187.3 level, And resistance is now likely to be seen at 198.6, a move above could see prices testing 201.3.

Trading Ideas:

Naturalgas trading range for the day is 187.3-201.3.

Natural Gas settled up at 195.90 erases earlier losses after stockpile data grew last week

The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. rose by 62 billion cubic feet.

The latest forecasts show that hot weather is likely to continue over the next 6-10 days, especially in the Midwest and East.