Natural gas prices traded in range as forecasts showing cooler weather on the way boosted the heating fuel. A colder weather system will arrive over the Northeast later this week, according to forecasters at NatGasWeather.com, which should result in a modest increase in heating demand. Prices of the heating fuel are up around 15% so far this month after plunging by almost 30% in the first two months of the year.
The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. declined by 150 billion cubic feet in the week ended March 17, matching forecasts. That compared with a withdrawal of 53 billion cubic feet in the preceding week, a build of 15 billion a year earlier and a five-year average drop of 21 billion cubic feet.
Meanwhile, market participants looked ahead to weekly storage data due on Thursday, which is expected to show a draw in a range between 43 and 54 billion cubic feet in the week ended March 24. That compares with a withdrawal of 150 billion cubic feet in the preceding week, a decline of 25 billion a year earlier and a five-year average drop of 27 billion cubic feet.
Total natural gas in storage currently stands at 2.092 trillion cubic feet, according to the U.S. Energy Information Administration, 16% lower than levels at this time a year ago but 12.7% above the five-year average for this time of year.
Technically market is under long liquidation as market has witnessed drop in open interest by -13.38% to settled at 4137 while prices down -0.3 rupees, now Naturalgas is getting support at 198.2 and below same could see a test of 196.4 level, And resistance is now likely to be seen at 202.8, a move above could see prices testing 205.6.