Natural gas yesterday traded with the negative node and settled -0.25% down at 157.3 shrugging off a closely watched government report that suggested demand for the fuel remains strong. The Energy Department's Energy Information Administration said in its weekly report that natural gas in storage grew by 39 billion cubic feet to 3.102 trillion cubic feet for the week ended June 29. The market still can't support prices as high as $3, amid elevated U. S. gas production and indications that demand might slow later in the month. Market participants closely watched the EIA's weekly natural gas inventories report for cues on supply and demand. A string of relatively modest inventory builds have helped lift prices and ease fears that inventories will run out of room this fall. High gas inventories have weighed on prices all year, amid booming production from shale gas fields and weak demand for gas-fired heating. The recent pick-up in cooling demand has helped lift prices from the 10-1/2-year low reached earlier in the year, but prices remain low by historical standards. Still, weather forecasts continue to predict above-normal temperatures across the U. S. in the near term, suggesting the demand for cooling is likely to remain strong. The inventory level was 22.7 percent above the five-year average of 2.529 trillion cubic feet, and 24.1 percent above last year's level of 2.500 trillion cubic feet, according to the government data. In yesterday's trading session natural gas has touched the low of 155.9 after opening at 157.1, and finally settled at 157.3. For today's session market is looking to take support at 156.3, a break below could see a test of 155.3 and where as resistance is now likely to be seen at 157.9, a move above could see prices testing 158.5.

Trading Ideas:

Nat. Gas trading range for the day is 155.3-158.5.

Natural gas ended lower shrugging off a closely watched government report that suggested demand for fuel remains strong

EIA said in its weekly report that natural gas in storage grew by 39 billion cubic feet

The inventory level was 22.7 percent above the five-year average of 2.529 trillion cubic feet