Natural gas settled -0.05% down at 188.40 as traders continued to monitor weather forecasts in an attempt to gauge the impact of shifting forecasts on winter heating demand. On the week, natural gas prices tumbled 3.55%, the first weekly decline in three weeks. Meanwhile, the more actively traded contract for March delivery climbed 1.3% on Friday to settle the week at USD3.465 per million British thermal units. Updated weather forecast models released Friday shifted from warm to cold and back again in the eight- to 14-day forecast. Near-term forecasts called for a break in the recent bout of frigid weather that has plagued the U. S. Midwest and Northeast in the past two weeks, before the eastern half of the nation sees below normal temperatures again during the first week of February. The CWG added Friday that it expected an "impressive" warm-up early next week, before cold air was expected to return to the Midwest and then spread east by midweek, dropping temperatures to below or much below normal into early February. 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. The U. S. EIA said Thursday that natural gas storage in the U. S. in the week ended January 18 fell by 172 billion cubic feet, broadly in line with market expectations. In yesterday's trading session natural gas has touched the low of 186.1 after opening at 189.4, and finally settled at 188.4. For today's session market is looking to take support at 186.5, a break below could see a test of 184.7 and where as resistance is now likely to be seen at 189.8, a move above could see prices testing 191.3.

Trading Ideas:

Nat. Gas trading range for the day is 184.67-191.27.

Natural gas dropped as weather forecasts predicted warmer temperatures to return next month.

U. S. EIA said in its weekly report that storage in the U. S. in the week ended Jan. 18 fell by 172 billion cubic feet.

Weather forecasts were predicting temperatures to warm up in early February, which also gave prices room to slide.