Natural Gas yesterday traded with the positive node and settled 2.3% up at 134.7 in the line of expectation as support seen by forecasts for warmer weather and recent indications major North American natural gas producers were cutting back on production in response to lower prices. Gas prices regained strength after the National Weather Service's six- to 10-day outlook issued on Monday called for above-normal readings for most parts of the US Warmer-than-normal temperatures increase the need for gas-fired electricity to to power air conditioning, boosting demand for natural gas. Prices are up almost 25% since hitting a decade-low of $1.902 on April 19, amid indications major North American natural gas producers were cutting back on production. Speculation that utility providers in the US were switching from pricier coal to cheaper natural gas provided further support over recent sessions. However, prices could experience a near-term downside correction as market remained concerned over elevated US storage levels. The US EIA said last week that natural gas storage in the US rose by 30bcf to 2.606 trillion cubic feet last week, up 44.2% from year ago levels and 44.5% higher than the five-year average. For today's session market is looking to take support at 131.5, a break below could see a test of 128.4 and where as resistance is now likely to be seen at 136.5, a move above could see prices testing 138.4.

Trading Ideas:

Nat.Gas trading range for the day is 128.37-138.37.

Natural gas futures jumped nearly 2.3% as cutting back on production in response to lower prices.

Warmer than normal temperatures increase the need for gas-fired electricity boosting demand for natural gas.

The US EIA said last week that natural gas storage in the U.S. rose by 30bcf to 2.606tcf last week.