Crude oil saw a correction on Thursday after a week’s rally on the back of profit bookings and weak economic outlook. It tracked back to the level of $61 after touching $62 in the previous session.

Natural gas futures fell by $0.366 following the reports of a buildup in inventory. The report showed an inventory of 103 bcf against the expected figure of 95 bcf.

The U. S. Energy Information Administration report showed that total domestic gas inventories of 2.116 trillion cubic feet stood at 514 bcf, or 32 percent, above last year and
387 bcf, or 22 percent, above the five-year average.

The National Weather Service eight- to 14-day outlook on Wednesday called for normal or below normal temperatures for most of the eastern two-thirds of the nation, with above seasonal readings expected in the West and upper Plains.

Industrial consumption of gas may tumble 8 percent this year because of the recession. Overall U. S. consumption is expected to contract 1.9 percent, outpacing reductions in output by almost twice as much.

Energy complex looks weak and may trade down during the day. Crude oil may edge lower during the day. Natural Gas is expected to trade with negative bias due to higher than expected built in inventories. In addition to this, the demand outlook given by Energy information Administration remains bullish, which might put downward pressure on prices. We recommend selling in crude oil and Natural Gas at every rise during the day.

Crude Oil prices are seen taking resistance at higher levels. Crude is expected to trade range bound between 2880 and 2945 during the day. Fresh buying can be seen only if it crosses 2945 levels on upside. Crude, breaking 2880 levels, can fall to 2850 and 2820 levels.

Natural Gas prices are seen falling downwards continuously from the top of 226. Currently, prices are taking strong support at the 178 level, the earlier resistance before the peak. Thus, Natural gas is expected to stick to this Support. If Natural gas breaches 178 levels, then further downside can be triggered touching 170 levels.