Naturalgas settled down -0.75% at 251.6 fell to the lowest level in six months on Tuesday, as cooler than expected summer weather was expected to limit demand for the fuel. Updated weather-forecasting models called for cooler temperatures across most parts of the heavily-populated Midwest and Northeast regions over the next five days, dampening demand for gas-fired electricity to power air conditioning. Demand for natural gas tends to fluctuate in the summer based on hot weather and air conditioning use. Meanwhile, concerns over tight supplies continued to fade away after weekly supply data released last week showed that utilities in the U.S. added 100 billion cubic feet of gas into storage in the week ended June 20. 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 as of last week, 25.7% below their level this time last year and 29.1% below the five-year average. Natural gas stockpiles have grown by 100 or more billion cubic feet for eight consecutive weeks, a record streak since 1994. This week’s government report due Thursday was expected to show that natural gas storage in the U.S. rose by 92 billion cubic feet in the week ended July 4. The five-year average increase for the period is 72 billion. technically market is under long liquidation as market has witnessed drop in open interest by -10.15% to settled at 8285 while prices down -1.9 rupee, now Naturalgas is getting support at 248.5 and below same could see a test of 245.4 level, And resistance is now likely to be seen at 254.5, a move above could see prices testing 257.4.

Trading Ideas:

Naturalgas trading range for the day is 245.4-257.4.

Natural gas continued to its weak trend as supplies continued to grow.

Natural gas got hit hard as tropical storm activity could cool temperatures.

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