Naturalgas on MCX settled down -3.92% at 188.9 as prices continued to slide on concerns that warmer weather will cut into demand in the coming weeks. Warmer-than-average weather forecasts in the near term have been weighing on prices, as shots of cold weather typically jump start demand for heating at this time of year. As warm temperatures linger, market participants are becoming nervous that this will be a repeat of last year’s mild winter. Meanwhile, inventories of natural gas have been running high on a market supply glut. But some believe that demand in the coming months could help work through high storage levels, especially if the winter season comes in colder than normal. Market participants awaited weekly supply data due on Thursday, which is expected to show a build in a range between 49 and 59 billion cubic feet in the week ended October 28. Total natural gas in storage currently stands at 3.909 trillion cubic feet, according to the U.S. Energy Information Administration, 1.3% higher than levels at this time a year ago and 4.7% above the five-year average for this time of year. Natural gas futures are down almost 9% so far this week as warmer-than-average weather in key gas-consuming regions in the U.S. ignited speculation that a mild winter will curtail demand for the heating fuel and leave a glut of it in storage, weighing on prices next year. Technically market is under fresh selling as market has witnessed gain in open interest by 21.4% to settled at 8675 while prices down -7.7 rupee, now Naturalgas is getting support at 185.4 and below same could see a test of 181.9 level, And resistance is now likely to be seen at 193.3, a move above could see prices testing 197.7.

Trading Ideas:

Naturalgas trading range for the day is 181.9-197.7.

Natural gas prices continued to slide on concerns that warmer weather will cut into demand in the coming weeks.

Warmer-than-average weather forecasts in the near term have been weighing on prices.

Meanwhile, inventories of natural gas have been running high on a market supply glut.