Naturalgas yesterday settled down -0.23% at 214.80 as market players continued to focus on rising inventory levels amid an uncertain demand outlook. On the week, natural gas prices sank 5.5%, the fifth consecutive weekly decline. For the quarter, natural gas declined 10.5%, as expectations for reduced demand weighed. The commodity is now down nearly 20% from a recent peak of USD4.439 per million British thermal units hit on May 1, meeting the definition of a bear market. Sentiment on the commodity remained downbeat following Thursday's bearish US supply report, which showed that natural gas storage in the US rose by 95bcf, above market expectations for an increase of 88 billion. Inventories rose by 58bcf in the same week a year earlier, while the five-year average change for the week is a rise of 79bcf. The EIA has reported above-average injections in six of the past eight weeks, underlining the view that demand for the fuel is weakening. Total US natural gas storage stood 2.533 trillion cubic feet as of last week, just 1.2% below the five-year average for this time of year. Early injection estimates for this week's storage data range from 51bcf to 75bcf, compared to a 41bcf increase during the same week a year earlier. Meanwhile, weather forecasting models pointed to mild weather across most of the Northeastern states next week. Industry weather group MDA Weather Services said it expected near seasonal or below seasonal temperatures to spread across the eastern half of the nation during the next six-to-ten-days. Technically market is getting support at 214.20 and below same could see a test of 213.60 level, And resistance is now likely to be seen at
215.03, a move above could see prices testing 215.80.

Trading Ideas:

Naturalgas trading range for the day is 213.7-215.9.

Natural gas dropped after official U. S. inventory data revealed the country's stockpiles shot up way more than expected last week.

Further depressing prices were weather reports calling for below-normal temperatures in pockets of the eastern U. S. in the coming days.

Mild summer temperatures cut into the need for gas-fired electricity to cool homes and dampen demand for natural gas.