Commodity Trading Tips for Naturalgas by Kedia Commodity

Natural gas continued its firm trend after data showed that natural gas supplies in storage in the U.S. fell more than expected last week. The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. declined by 151 billion cubic feet in the week ended January 6, exceeding market expectations for a drop of 144 billion cubic feet. That compared with a withdrawal of 49 billion cubic feet in the preceding week, 168 billion a year earlier and a five-year average drop of 167 billion cubic feet. Total natural gas in storage currently stands at 3.160 trillion cubic feet, according to the U.S. Energy Information Administration, 10.3% lower than levels at this time a year ago and around 0.1% below the five-year average for this time of year. Meanwhile, updated weather forecasts for the end of January turned colder, which should boost demand for the heating fuel. Weather models initially predicted mild temperatures throughout most parts of the U.S. during the period. The U.S. land-based rig return broke its stride during the week ending Friday, Jan. 13, with the count dropping by six units. Canada more than made up for U.S. losses, adding 110 rigs as crews returned from holiday break and rushed to drill more wells before the spring thaw. The U.S. decline was spread fairly evenly across plays and states, with declines of no more than two units. Wyoming added two rigs. Technically market is under short covering as market has witnessed drop in open interest by -4.58% to settled at 3230 while prices up 1.5 rupee, now Naturalgas is getting support at 229 and below same could see a test of 224.9 level, And resistance is now likely to be seen at 235.9, a move above could see prices testing 238.7.

Trading Ideas:

Naturalgas trading range for the day is 224.9-238.7.

Natural gas continued its firm trend after data showed that natural gas supplies in storage in the U.S. fell more than expected last week.

US EIA said in its weekly report that natural gas storage in the U.S. declined by 151 billion cubic feet

Total natural gas in storage currently stands at 3.160 tcf, according to the U.S. EIA, 10.3% lower than levels at this time a year ago.