Naturalgas settled up 0.73% at 235.9 as forecasts for a widespread cold snap suggested above normal demand for the heating fuel, on the heels of the first storage withdrawal of the winter season. Government data also indicates that residential demand for natural gas has picked up. A report from the U. S. Energy Information Administration showed that natural gas supplies fell by 45 billion cubic feet last week. Analysts had expected a decline of 36 bcf. EIA data now show that total stockpiles of 3.789 trillion cubic feet are down 2.3% from record-high levels at this time a year ago and are now just 0.4% above the five-year average for this week. U. S. output has surged mainly due to hydraulic fracturing and horizontal drilling techniques, which have allowed energy companies to extract supplies trapped in shale-gas fields. Total U. S. natural gas storage stood at 3.789 trillion cubic feet. Stocks were 89 billion cubic feet less than last year at this time and 15 billion cubic feet above the five-year average of 3.774 trillion cubic feet for this time of year. The report showed that in the East Region, stocks were 118 billion cubic feet below the five-year average, following net withdrawals of 31 billion cubic feet. Stocks in the Producing Region were 96 billion cubic feet above the five-year average of 1.188 billion cubic feet after a net withdrawal of 13 billion cubic feet. Prices also enjoyed support on weather forecasts calling for below-normal temperatures in key gas-consuming regions in the U. S. over the next ten days. Now Naturalgas is getting support at 232.6 and below same could see a test of 229.4 level, And resistance is now likely to be seen at 238.2, a move above could see prices testing 240.6.

Trading Ideas:

Naturalgas trading range for the day is 229.4-240.6.

Natural gas rose as forecasts for a widespread cold snap suggested above normal demand, on the heels of the first storage withdrawal of the winter season.

Government data also indicates that residential demand for natural gas has picked up.

EIA data now show that total stockpiles of 3.789 trillion cubic feet are down 2.3% from record-high levels at this time a year ago