Naturalgas settled up 1.33% at 235.40 after the prices dropped to the day's low on a bearish weekly U.S. supply report sent natural gas future falling on Thursday though prices jumped back into positive territory in choppy trading as investors digested weather reports over the lower 48 U.S. states as well as in the tropical Atlantic Ocean. The U.S. EIA said in its weekly report that natural gas storage in the U.S. rose by 88bcf, surpassing expectations for an increase of 83bcf, which sent prices falling earlier Thursday. Inventories rose by 58bcf in the same week a year earlier, while the five-year average change is a build of 48bcf. Injections of gas into storage have surpassed the five-year average for 18 consecutive weeks, alleviating concerns over tightening supplies. Total U.S. natural gas storage stood at 2.467 trillion cubic feet. Stocks were 500bcf less than last year at this time and 535bcf below the five-year average of 3.090 trillion cubic feet for this time of year. Prices jumped back up in volatile trading session fueled by uncertainty over how weather patterns may affect prices. A low-pressure system in the western Atlantic Ocean appeared poised to develop into a tropical cyclone, with the National Hurricane Center giving the storm a 50% chance of becoming a tropical depression in 48 hours and a 70% chance in 5 days. The latest model runs at the time of writing appeared to keep the system in the Atlantic Ocean and out of the gas-rich Gulf of Mexico, but uncertainty priced in the possibility that the storm could disrupt operations should it develop. Technically market is getting support at 230 and below same could see a test of 224.6 level, And resistance is now likely to be seen at 240.6, a move above could see prices testing 245.8.

Trading Ideas:

Naturalgas trading range for the day is 224.6-245.8.

Natural gas ended with gains but pared most of its gains after data showed that U.S. natural gas supplies rose more than expected last week.

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

Inventories rose by 58 bcf in the same week a year earlier, while the five-year average change is a build of 48 bcf.