Naturalgas settled up 0.23% at 262.2 continuing its Thursday's positive trend after the US EIA posted its weekly reading on natural gas inventories. Weather patterns project more moderate weather for the US in the mid term. The US Energy Information Administration (EIA) posted its weekly reading on natural gas inventories for the seven days ended June 27. Stocks were shown to have added 100 Billion cubic feet (Bcf), 22 Bcf more than the 5-year average gain for the week.

Total gas held in underground storage hubs is still 25.7% lower than last year's levels during the comparable period. However, the EIA has suggested gains will continue to be above-average, and that most likely inventories will be completely replenished ahead of winter heating season. The five-year average change for the week is an increase of 68 billion cubic feet. Total U. S. natural gas storage stood at 1.929 trillion cubic feet. Stocks were 666 billion cubic feet less than last year at this time and 790 billion cubic feet below the five-year average of 2.719 trillion cubic feet for this time of year.

Natural gas stockpiles have grown by 100 or more billion cubic feet for eight consecutive weeks, a record streak since 1994. Producers would need to add approximately 2.6 trillion cubic feet to storage by November 1 to meet typical winter demand. Technically market is under short covering as market has witnessed drop in open interest by -6.45% to settled at 7426 while prices up 0.6 rupee, now Naturalgas is getting support at 260.6 and below same could see a test of 259.1 level, And resistance is now likely to be seen at 263.4, a move above could see prices testing 264.7.

Naturalgas trading range for the day is 259.1-264.7.

Naturalgas gained continuing its Thursday's positive trend after the US EIA posted its weekly reading on natural gas inventories.

Weather patterns project more moderate weather for the US in the mid term.

Natural gas stockpiles have grown by 100 or more billion cubic feet for eight consecutive weeks, a record streak since 1994

Technically market is under short covering as market has witnessed drop in open interest by -6.45% to settled at 7426.

SELL NAT GAS JULY @ 264.50 SL 268 TGT 261.50-258.MCX