Natural gas settled flat at 178.50 held steady after official data revealed that inventories fell more than expected last week, reflecting stronger demand that previously anticipated. The US Energy Information Administration said in its weekly report that natural gas storage in the US in the week ended February 15 fell by 127bcf, compared to expectations for a drop of 122bcf. Inventories fell by 155bcf in the same week a year earlier, while the five-year average change for the week is a decline of 140bcf. Total US natural gas storage stood at 2.400 trillion cubic feet as of last week. Stocks were 242bcf less than last year at this time and 361bcf above the five-year average of 2.039 trillion cubic feet for this time of year. The report showed that in the East Region, stocks were 102bcf above the five-year average, following net withdrawals of 79bcf. Stocks in the Producing Region were 188bcf above the five-year average of 737bcf after a net withdrawal of 35bcf. Meanwhile, natural gas traders kept an eye on weather forecasts for the remainder of February. Market expected temperatures in the heavily populated Northeast and Midwest to range from normal to below normal for the next week, with overnight lows holding in the 20s and low-30s Fahrenheit. Natural gas futures are very sensitive to weather reports in the US winter. For today's session market is looking to take support at 175.1, a break below could see a test of 171.6 and where as resistance is now likely to be seen at 182.3, a move above could see prices testing 186.

Trading Ideas:

Nat. Gas trading range for the day is 171.63-186.03.

Natural gas settled flat after a report from the U. S. EIA showed natural gas supplies fell more-than-expected last week.

U. S. EIA said in its weekly report that natural gas storage in the U. S. fell by 127 billion cubic feet.

Any significant gains in the near-term will likely be limited as the coldest part of the winter has effectively passed