Natural Gas settled 8.32% up at 165.80 as market participants looked ahead to a US government report on natural gas supplies scheduled for later in the week. Price got support after the news hit that nearly 10% of gas production remained shut after the aftermath of Hurricane Isaac, which shut much of the natural gas production in the Gulf of Mexico. Also some technical buying also contributed to gains, after futures moved in to oversold territory. Updated weather forecasts Monday predicted below-normal temperatures in parts of the Midwest in the coming week and above-normal readings along both coasts. Natural gas demand typically rises in the summer as air-conditioning use boosts utility demand, then sinks in the fall as demand weakens ahead of the peak winter heating season. Despite the strong two-day gain, natural gas futures were likely to come under pressure in the near-term amid ongoing concerns over bloated US inventory levels. The storage surplus to last year will have to be cut by at least another 150bcf in the 12 weeks left before winter withdrawals begin to avoid breaching the government's 4.1tcf estimate of total capacity. For today's session market is looking to take support at 156.3, a break below could see a test of 146.7 and where as resistance is now likely to be seen at 171.5, a move above could see prices testing 177.1.

Trading Ideas:

Nat.Gas trading range for the day is 146.73-177.13.

Natural gas shoot up ahead of supplies report and on news that 10% of gas production still remained shut.

Hurricane Isaac has nearly cut's 10% of gas production as production still remained shut till Sunday.

Technical buying also contributed to gains, after futures moved in to oversold territory.