Naturalgas settled up 3.8% at 237.6 after official data revealed U.S. inventories rose less than expected last week. The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended July 25 rose by 88 billion cubic feet, below expectations for an increase of 93 billion cubic feet. The five-year average change for the week is an increase of 42 billion cubic feet. Total U.S. natural gas storage stood at 2.307 trillion cubic feet. Stocks were 530 billion cubic feet less than last year at this time and 641 billion cubic feet below the five-year average of 2.948 trillion cubic feet for this time of year. Natural gas prices have been under heavy selling pressure in recent sessions after updated weather-forecasting models called for below-normal temperatures across much of the U.S. over the coming days. Below-normal temperatures in the U.S. summer often prompt households to throttle back on their air conditioning. According to NatGasWeather.com’s weather forecast for the July 31 – August 6 period, temperatures over most of the US will begin to edge higher starting next week, paving the way for a slightly warmer trend. Currently, readings in the country’s central and southern parts are below normal after an unseasonably cool air mass pushed deep into Texas and the Southeast, ensuring comfortable readings and lower-than-usual cooling demand. As we have reported in the previous days, the western and southernmost areas of the country remain warm to hot, inducing moderate-to-high local electricity demand to power air conditioning. Technically now Naturalgas is getting support at 231.8 and below same could see a test of 226 level, And resistance is now likely to be seen at 240.7, a move above could see prices testing 243.8.

Trading Ideas:

Naturalgas trading range for the day is 226-243.8.

Natural gas rallied after official data revealed U.S. inventories rose less than expected last week.

The U.S. EIA said in its weekly report that natural gas storage in the U.S. rose by 88 billion cubic feet.

Stocks were 530 bcf less than last year at this time and 641 bcf below the five-year average of 2.948 tcf for this time of year.