Commodity Trading Tips for Natural Gas by KediaCommodity

Natural-GasNatural Gas yesterday traded with the negative node and settled -0.32%
down at 124.4 due to mild late-winter weather forecasts and bloated
supplies. While planned output cuts by several key producers and
unexpected nuclear plant outages have lent some support to prices in
the last few weeks, traders said the huge overhang in storage plus
tapering winter demand were likely to keep gas prices on the defensive
until summer cooling loads kick in. Gas storage levels are at record
highs at 45% above five-year averages, amid weak demand and persistent
above-normal temperatures, and likely Natural gas held in storage fell
82 billion cubic feet last week, the U.S. Energy Information
Administration reported. The draw was below the 90-billion-cubic feet
decline forecast by analysts surveyed by Dow Jones Newswires.
Inventories of 2.513 trillion cubic feet last week, are at the highest
level ever for this time of year and 45% above the five-year average
for the week, the data show. The number of natural-gas-drilling rigs
working in the U.S. fell by 19 in the latest week to 691, according to
oil-field-services company Baker Hughes Inc. (BHI). The figure was down
208 from a year ago. The lower rig count isn't seriously denting record
gas output because oil drilling continues to climb sharply.to pressure
prices. In yesterday's trading session natural gas has touched the low
of 123.6 after opening at 124.6, and finally settled at 124.4. For
today's session market is looking to take support at 123.7, a break
below could see a test of 123.1 and where as resistance is now likely
to be seen at 124.9, a move above could see prices testing 125.5.

Trading Ideas:

Nat.Gas trading range for the day is 123.07-125.47.

Natural gas on Saturday dropped due to mild late-winter weather forecasts and bloated supplies

Above-normal March temperatures seen for most of U.S.

Gas storage levels higher than expected, +45% vs. five-year average