Natural gas settled flat at 181.90 as near-term weather forecasts turned cooler, boosting 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. Sentiment on the heating fuel improved after private forecaster WSI Energycast said cold weather will spread across most parts of the eastern half of the country over the next 11-to-15-days. Weather service provider AccuWeather said it expected temperatures in the Northeast and Midwest to range from normal to below normal for the next 10 days, with overnight lows dipping into the 20s and low-30s Fahrenheit during the period. Despite the upward movement, market analysts have warned that any significant gains in the near-term will likely be limited as the coldest part of the winter has effectively passed and below-normal temperatures in February and March mean less than they do in January. The heating season from November through March is the peak demand period for U. S. gas consumption. Nearly 50% of all U. S. households use gas for heating. Concerns over bloated inventory levels were also likely to keep weighing on prices. On Thursday, the U. S. EIA said that natural gas storage fell by 127bcf last week, compared to expectations for a drop of 122bcf. For today's session market is looking to take support at 181.5, a break below could see a test of 181.1 and where as resistance is now likely to be seen at 182.3, a move above could see prices testing 182.7.

Trading Ideas:

Nat. Gas trading range for the day is 181.1-182.7.

Natural gas settled flat on reports U. S. could see uncommonly cool temperatures over next several weeks.

High inventories and warmer-than-expected temperatures have weighed on natural gas futures this year.

Data showed the gas-directed drilling rig count rose this week for the first time in four weeks, climbing by seven to 428.