Natural Gas yesterday traded with the negative node and settled -0.34% down at 118.1 as a report from the U.S. Energy Information Administration revealed the earliest seasonal increase in stored supplies in sixty months. The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended March 16 rose by 11 billion cubic feet, after declining by 64 billion cubic feet in the preceding week. Inventories fell by 20 billion cubic feet in the same week a year earlier, while the five-year average change for the week is a decline of 17 billion cubic feet, according to U.S. Energy Department data. The report showed that in the East Region, stocks were 356 billion cubic feet above the five-year average, following a withdrawal of 10 billion cubic feet. Prices were under pressure before the supply data, as market sentiment has been dominated by concerns over elevated U.S. storage levels and mild weather that has limited demand for the fuel. Latest forecasts from the National Oceanic and Atmospheric Administration show above-normal temperatures covering most of the U.S. into early April, capping off an abysmal heating season for the U.S. natural-gas market.  In yesterday's trading session natural gas has touched the low of 116.1 after opening at 118.8, and finally settled at 118.1. For today's session market is looking to take support at 115.5, a break below could see a test of 112.8 and where as resistance is now likely to be seen at 121.4, a move above could see prices testing 124.6.

Trading Ideas:

Nat.Gas trading range for the day is 112.83-124.63.

Natural gas settled -0.34% down as report from EIA revealed the earliest seasonal increase in stored supplies in sixty months

Prices were under pressure as market sentiment has been dominated by concerns over elevated U.S. storage levels

EIA said in its report that natural gas storage in U.S. rose by 11 billion cubic feet