Natural Gas settled 4.24% up at 172.10 on short covering ahead of Thursday’s inventory but fundamentally market is still can show weakness as warm weather forecasts worked with the overextended inventory levels to create a bearish environment for the commodity. Updated weather forecasts predicted normal or above-normal temperatures for most of the country into early October, dampening early-Autumn demand. The CWG said earlier that warmer-than-normal temperatures are expected across the Midwest and East Coast over the next two weeks, keeping demand for heating "relatively low" for this time of year. 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. Ongoing concerns over bloated US inventory levels also added to the selling pressure. The US EIA said last week that natural gas storage in the US rose by 67bcf, just above market expectations for an increase of 64bcf. A bout of extreme heat across much of the US earlier in the summer helped boost natural gas prices above the key $3.00-level in late-July. For today's session market is looking to take support at 167.2, a break below could see a test of 162.3 and where as resistance is now likely to be seen at 175.1, a move above could see prices testing 178.1.

Trading Ideas:

Nat.Gas trading range for the day is 162.3-178.1.

Natural gas ended higher lifted by some short covering

Record high inventory, but slimmer year-on-year surplus expected

Today natural gas storage: EXP: 75B PREV: 67B. Actual is at 8.00PM