Natural gas settled up by 0.66% at 229.6 as prices rose to their highest price in nearly two years as cooler forecasts continue raising expectations for demand. Forecasts show below-average temperatures spreading across most of the country starting next week. MDA Weather Services in Maryland updated its forecast to show those cold temperatures, some extreme in the Northwest Rockies, pushing slightly above-normal temperatures that had been in Tuesday's forecast almost completely out of the Eastern U. S. The U. S. Energy Information Administration is likely to report Thursday that stockpiles shrank substantially last week as colder weather increased heating demand. The weekly survey shows expectations for a 53-billion-cubic-feet drain from stockpiles, about 20% larger than average for this time of year. If the storage estimate is correct, inventories as of Nov. 25 totaled 3.9 trillion cubic feet. While they are shrinking compared with years past, those levels are still 0.5% above levels from a year ago and 6.2% above the five-year average for the same week. Gas prices are gaining ground as frigid weather creeps into December forecasts, prompting speculation that an extended chill will cut into record stockpiles of the fuel. Rising gas exports and a slowdown in output from shale formations have stoked demand, leaving the market vulnerable to supply constraints during the winter. Technically market is under fresh buying as market has witnessed gain in open interest by 4.92% to settled at 4777 while prices up 1.5 rupee, now Naturalgas is getting support at 226.2 and below same could see a test of 222.9 level, And resistance is now likely to be seen at 231.9, a move above could see prices testing 234.3.

Trading Ideas:

Naturalgas trading range for the day is 222.9-234.3.

Natural gas prices rose to their highest price in nearly two years as cooler forecasts continue raising expectations for demand.

Gas prices are gaining ground as frigid weather creeps into December forecasts.

Forecasts show below-average temperatures spreading across most of the country starting next week.