Naturalgas settled down -1.89% at 264.80 after updated weather forecasting models predicted milder temperatures to edge out a cold air mass that froze a good portion of the U. S. this week. A blast of record-setting cold air will give way to milder temperatures across much of the central and eastern U. S. this week, which allowed natural gas prices to fall on expectations for homes and business to throttle back on their heating. Losses were somewhat limited on forecasts for a return of below-normal temperatures by mid January. While the cold snap may be less severe as the current weather system, temperatures may dip low enough to hike demand for heating once the mild snap ends. The heating season from November through March is the peak demand period for U. S. gas consumption. Updated weather forecasting models called for frigid temperatures to give way to a thawing trend across a good portion of the eastern U. S. in the coming week. By Saturday a high of 51 degrees Fahrenheit was expected in New York according to weather service provider AccuWeather. com. Meanwhile, U. S. supply levels remained in focus. Early withdrawal estimates for Thursday's storage report range from 140bcf to 230bcf, compared to a drop of 191bcf during the same week a year earlier. The five-year average change for the week is a decline of 131bcf. Technically market is under long liquidation as market has witnessed drop in open interest by -3.8% to settled at 13155 while prices down -5.1 rupee, now Naturalgas is getting support at 262.2 and below same could see a test of 259.5 level, And resistance is now likely to be seen at 269.7, a move above could see prices testing 274.5.

Trading Ideas:

Naturalgas trading range for the day is 259.5-274.5.

Natural gas dropped as market players continued to focus on near-term weather forecasts in the U. S. and Thursday's closely-watched weekly supply data.

Bearish speculators are betting that the mild weather will decrease demand for the heating fuel.

Today natural gas storage: EXP: -147B PREV: -97B. Actual is at 9.00PM