Natural Gas yesterday traded with the negative node and settled -3.04% down at 210.30 fell sharply as forecasts showing mild winter temperatures across key parts of the US in the coming week continued to dampen sentiment on the heating fuel. Natural gas prices have been under heavy selling pressure since touching a 14-month high on November 22. The heating fuel has lost nearly 7% in the past four trading sessions, after updated weather forecasts showed that warmer-than-normal temperatures will descend across the US during the first week of December. The Commodity Weather Group said that December was forecast to start much warmer than usual across the US The weather group expected highs possibly reaching into the 60s Fahrenheit in the Midwest and along the East Coast from December 1 to December 5. Forecasts originally called for colder-than-average weather during the period. Bearish speculators are betting on the warm weather reducing early-winter demand for the heating fuel. The heating season from November through March is the peak demand period for US gas consumption. Market players now looked ahead to Thursday's closely watched US government report on natural gas supplies. The report was expected to show a withdrawal of 6 billion cubic feet. In March, after an exceptionally warm winter, stockpiles were approximately 60% above five-year levels. For today's session market is looking to take support at 207.8, a break below could see a test of 205.3 and where as resistance is now likely to be seen at 214.6, a move above could see prices testing 218.9.

Trading Ideas:

Nat. Gas trading range for the day is 205.3-218.9.

Natural gas dropped as forecasts showing mild winter temperatures in coming week continued to dampen sentiment

The Commodity Weather Group said that December was forecast to start much warmer than usual across the U. S.

Today natural gas storage: EXP: -5B PREV: -38B. Actual is at 9.00PM