Natural gas yesterday traded with the positive node and settled 0.66% up at 182.20 as forecasts showing colder weather in the coming week boosted near-term demand expectations for the heating fuel. Natural gas prices have closely tracked weather forecasts in recent weeks, as traders try to gauge the impact of shifting forecasts on winter heating demand. Updated weather forecasts released Friday showed that colder-than-normal weather was expected across key parts of the US later in January and into early-February, boosting sentiment on the heating fuel. Weather service provider MDA Weather said that it expected temperatures to fall below normal in the Northeast and Great Lakes-region of the US from January 21 through January 25. Meanwhile, Thursday's larger-than-expected drawdown from winter inventories also kept momentum to the upside. The US Energy Information Administration said that natural gas storage in the US in the week ended January 4 fell by 201 billion cubic feet, the most since February 2011. Inventories fell by 95 billion cubic feet in the same week a year earlier, while the five-year average change for the week is a decline of 149 billion cubic feet. For today's session market is looking to take support at 181.1, a break below could see a test of 180.1 and where as resistance is now likely to be seen at 183.1, a move above could see prices testing 184.1.

Trading Ideas:

Nat. Gas trading range for the day is 180.07-184.07.

Natural gas gained as weather services reported that cooler temperatures are due to return for a good portion in coming weeks.

Government reports that supplies are on the decline pushed up prices as well.

Data last week showed the gas-directed rig count rose by eight to 439, its third straight weekly gain.