Natural Gas settled -0.51% down at 155.50 as market participants continued to monitor weather forecasts to gauge the strength of late-summer cooling demand. Trade looked likely to remain thin, with markets in the US closed for the Labor Day holiday. Industry weather group MDA EarthSat said temperatures in the Midwest and across the East Coast were expected to be well above normal over the next five days. Above-average summer temperatures increase the need for gas-fired electricity to cool homes, boosting demand for natural gas. But prices remained under pressure amid ongoing concerns over bloated US inventory levels. Market have warned that without strong demand through the rest of the summer cooling season, gas inventories will reach the limits of available capacity later this year. A bout of extreme heat across much of the US over the past two months helped boost natural gas prices above the key $3level in recent weeks. Prices rallied to a 2012 high of $3.275/mBtu on July 31. But futures have come under heavy selling pressure since the start of August, losing almost 14% after extended weather forecasts pointed to milder weather across most parts of the US For today's session market is looking to take support at 154.8, a break below could see a test of 154.2 and where as resistance is now likely to be seen at 156.1, a move above could see prices testing 156.8.

Trading Ideas:

Nat.Gas trading range for the day is 154.17-156.77.

Natural gas dropped as investors continued to monitor weather forecasts to gauge the strength of late-summer cooling demand.

A bout of extreme heat across much of the U.S. over the past two months helped boost natural gas prices

Above-average summer temperatures increase the need for gas-fired electricity to cool homes, boosting demand for natural gas