Natural Gas yesterday traded with the negative node and settled -0.43% down at 117.4 as weather forecast dims hopes for increase in demand. The Energy Information Administration data showed inventories ending winter at a record high for this time of year of 2.38 trillion cubic feet, or 54% above the five-year average. Analysts worry that bloated stockpiles will continue their normal growth in coming months, keeping the glut in place and pressure on prices into the start of next winter. U.S. energy producers this week scaled back the number of rigs drilling for natural gas for the 11th straight week, as low gas prices kept squeezing profits, forcing some to curb dry gas drilling operations. Weak demand during one of the mildest winters on record has helped keep gas prices on the defensive this year, hitting another 10-year low of $2.204 just last week and keeping pressure on producers to cut back uneconomic operations. Producers like Chesapeake, the nation's second-largest gas producer, and Encana, Canada's largest gas producer, have said they will shut in some gas output or trim spending in pure dry gas plays due to the price slide. In yesterday's trading session natural gas has touched the low of 116.8 after opening at 117.6, and finally settled at 117.4. For today's session market is looking to take support at 116.9, a break below could see a test of 116.5 and where as resistance is now likely to be seen at 117.7, a move above could see prices testing 118.1.

Trading Ideas:

Nat.Gas trading range for the day is 116.47-118.07.

Natural gas ended with weak node as weather forecast dims hopes for increase in demand

Weather forecast show normal to above-normal temperatures into early April, but not extreme enough to spike rise in cooling demand

The number of working gas rigs fell by 11 last week to 652 and was down by 228 from a year ago.