Natural gas settled up by 0.91% at 187.9 as market players looked ahead to cold weather forecast in key gas-consuming regions in the U.S. which should boost demand for the heating fuel. Updated weather forecasting models revealed that a strong cold blast with rain and snow will arrive into the eastern U.S. by next week for the first relatively cold Fall-like weather system this year. Natural gas lost over 10% last week as warmer-than-average weather in key gas-consuming regions in the U.S. ignited speculation that a mild winter will curtail demand for the heating fuel and leave a glut of it in storage, weighing on prices next year. Meanwhile, market participants awaited weekly supply data due on Thursday, which is expected to show a build in a range between 51 and 61 billion cubic feet in the week ended November 4. That compares with a gain of 54 billion cubic feet in the preceding week, 54 billion a year earlier and a five-year average build of 38 billion cubic feet. Total natural gas in storage currently stands at 3.963 trillion cubic feet, according to the U.S. Energy Information Administration, 1.2% higher than levels at this time a year ago and 4.4% above the five-year average for this time of year. Updates to weather forecasts over the weekend showed that temperatures could gradually become less extremely warm, particularly along the East Coast. Technically market is under short covering as market has witnessed drop in open interest by -5.28% to settled at 8903 while prices up 1.7 rupee, now Naturalgas is getting support at 185.3 and below same could see a test of 182.6 level, And resistance is now likely to be seen at 191.6, a move above could see prices testing 195.2.

Trading Ideas:

Naturalgas trading range for the day is 182.6-195.2.

Natural gas remained supported as market players looked ahead to cold weather forecast in U.S. which should boost demand.

Total natural gas in storage currently stands at 3.963 trillion cubic feet, according to the U.S. EIA.

Updates to weather forecasts over the weekend showed that temperatures could gradually become less extremely warm.