Naturalgas settled up 2.04% at 269.50 surged on Thursday as a powerful winter storm trekked eastward over a large, heavily-populated swath of the U. S., which should hike demand for heating at the country's thermal power plants.

According to the U. S. NWS and private weather forecasters, parts of southern New England into New York State, Pennsylvania, Ohio and Indiana may experience periods of heavy snow with blustery winds through early Friday. The NWS predicted as much as eight inches of snow will fall in New York City, while Boston is expected to see up to 14 inches. Wind gusts could reach speeds of 45 miles per hour, and many areas will see temperatures 20 to 30 degrees below normal. Colder-than-average winter temperatures increase the need for gas-fired electricity to heat homes and businesses, boosting demand for natural gas.

The heating season from November through March is the peak demand period for U. S. gas consumption. U. S. supply levels also remained in focus. Total U. S. natural gas storage stood at 3.071 trillion cubic feet as of last week, approximately 16% below last year's unusually high level and nearly 9% below the five-year average for this time of year. Early withdrawal estimates for this Friday's storage data range from 110bcf to 150bcf, compared to a drop of 126bcf during the same week a year earlier.

The five-year average change for the week is a decline of 121bcf. Natural gas prices have been well-supported in recent weeks, as chilly early winter weather helped drive prices to a 3year high of 286.60 in December.  Technically market is getting support at 263.4 and below same could see a test of 257.4 level, And resistance is now likely to be seen at 273.4, a move above could see prices testing 277.4.

Trading Ideas:

Naturalgas trading range for the day is 257.4-277.4.

Natural gas rebounded as forecasts for colder weather in the U. S. prompted speculation that demand for the heating fuel will increase

Nymex gas prices ended 2013 with a gain of nearly 22%, the biggest annual increase since 2005.

Today natural gas storage: EXP: -125B PREV: -177B. Actual is at 9.00PM