Natural gas yesterday traded with the negative node and settled -0.71% down at 125.1 slipped further approaching towards multi-year low as the commodity struggles for direction prior to today's inventory figures. Natural gas prices have plunged about 18% since January, 10th, as forecasts for warm winter weather in the US add to high inventory levels. Winter temperatures in the US have yet to reach levels cold enough to boost demand for the heating fuel. In the Northeast, there have been only four warmer Dec in the last 117 years, according to the US NWS. Concerns over elevated inventory levels in the US added to selling pressure. Currently, total US natural gas supplies remain at 3.377tcf, up 13.4% compared to the same week a yoy and 17% higher than the five-year average for the week. Natural gas futures have collapsed nearly 31% since the beginning of December.  To this date in January, prices are approximately 45% lower than a year ago. The natural gas contract has not been this inexpensive during this time for the last decade. Citibank made clear in a report last week, “In the near term, there appears to be no bottom for the front contract price as it continues to fall on weak seasonal heating demand." For today's session market is looking to take support at 123.3, a break below could see a test of 121.4 and where as resistance is now likely to be seen at 128, a move above could see prices testing 130.8.

Trading Ideas:

Natural Gas trading range is 121.4-130.8.

Natural gas prices slipped lower approaching a 10 year low, as the commodity struggles for direction prior to inventory figures.  

Prices plunged 6.8% yesterday to hit the lowest since September, 4th, 2009 when prices made a 10 year low of $2.408.

Today natural gas storage: EXP: -88B PREV: -95B. Actual is at 9.00PM.