Natural gas yesterday traded with the negative node and settled -5.97% down at 154.10 after a report from the US EIA showed US gas supplies rose more-than-expected last week. The US EIA said in its weekly report that natural gas storage in the US in the week ended June 22 rose by 57bcf, above market expectations for an increase of 52bcf. Forecasts for warmer than normal weather across key parts of the US in the coming days limited losses. The CWG said earlier in the week that temperatures were expected to reach 38 Celsius later this week from the Mississippi River to the mid-Atlantic. Warmer than normal temperatures increase the need for gas-fired electricity to power ac, boosting demand for natural gas. Natural gas accounts for about a quarter of US electricity generation. Speculation that utility providers in the US were switching from pricier coal to cheaper natural gas provided further support over recent weeks. Market see no major strong demand through the rest of the summer, gas inventories will reach the limits of available capacity later this year. The storage surplus to last year will have to be cut by at least another 435bcf to avoid breaching the government's 4.1tcf estimate of total capacity. For today's session market is looking to take support at 150.7, a break below could see a test of 147.2 and whereas resistance is now likely to be seen at 160.4, a move above could see prices testing 166.6.

Trading Ideas:

Nat. Gas trading range for the day is 147.23-166.63.

Natural gas moved lower after a report from the EIA showed gas supplies rose more than expected

EIA said in its weekly report that natural gas storage rose by 57bcf vs 52bcf.

CWG said earlier in the week that temperatures were expected to reach 38 Celsius in mid-Atlantic.