Natural gas yesterday settled down -0.26% at 227.10 hitting a two-week low, as sentiment on the fuel was dampened amid an uncertain demand outlook. Natural gas prices lost 3.7% on Thursday after a report from the US Energy Information Administration showed natural gas supplies rose broadly in line with expectations last week. The EIA data showed that natural gas storage in the US rose by 88 billion cubic feet. Inventories rose by 72 billion cubic feet in the same week a year earlier, while the five-year average change for the week is a rise of 92 billion cubic feet. Total US natural gas storage stood at 2.141 trillion cubic feet as of last week, 4% below the five-year average for this time of year. Early injection estimates for this week's storage data range from 78 billion cubic feet to 95 billion cubic feet, compared to a 63 billion cubic feet increase during the same week a year earlier. The five-year average for the week is a build of 92 billion cubic feet. Meanwhile, an uncertain demand outlook also added to the selling pressure. Weather forecasting models continued to point to above-normal temperatures across most of the US over the next five days, before giving way to below-normal temperatures later in June. Demand for natural gas tends to rise in the summer months as warmer temperatures increase the need for gas-fired electricity to power air conditioning. Now natural gas is getting support at 226.6 and below same could see a test of 226.1 level, And resistance is now likely to be seen at 227.5, a move above could see prices testing 227.9.

NATURAL GAS

Nat. Gas trading range for the day is 225.87-230.87.

Natural gas declined as sentiment on the fuel was dampened amid an uncertain demand outlook.

Weather forecasting models continued to point to above-normal temperatures across most of the US.

Demand for natural gas tends to rise in the summer months as warmer temperatures increase.

Natural Gas is holding with a support at 225.87 and resistance will be likely at 230.87.

SELL NAT. GAS JUNE BELOW 227 SL 229 TGT 224.50-222. MCX