Natural gas settled -0.46% down at 197.40 as a recent rally began to wane after weather forecasts pointed to a warming trend settling over the heavily populated central and eastern swathes of the US Warmer weather cuts into demand for heating in the nation’s households and businesses and sends natural gas prices falling. Weather services predicted normal temperatures to settle into the East Coast US through the end of March, with some calling for warmer-than-normal thermometer readings. The reports began to chip away at a rally that sent natural gas gaining due to unseasonably cold weather patterns that have gripped the country for much of February and March. However, supply data released late last week continued to support natural gas. On Thursday, the US EIA said in its weekly report that natural gas storage in the week ending March 1 fell by 146 billion cubic feet, well beyond market expectations for a drop of 134 billion cubic feet. Inventories fell by 92bcfin the same week a year earlier, while the five-year average change for the week represented a decline of 107 billion cubic feet. Total US natural gas storage stood at 2.083 trillion cubic feet as of last week. Stocks were 361bcfless than last year at this time and 269bcfabove the five-year average of 1.814 trillion cubic feet for this time of year. The report showed that in the East Region, stocks were 73bcfabove the five-year average, following net withdrawals of 77 billion cubic feet. For today’s session market is looking to take support at 195.9, a break below could see a test of 194.4 and where as resistance is now likely to be seen at 199.4, a move above could see prices testing 201.4.
Nat. Gas trading range for the day is 194.4-201.4.
Natural gas dropped after weather forecasts pointed to a warming trend settling over the heavily populated central and eastern swathes of the US
Updated weather forecasts released earlier pointed to milder temperatures across most parts of the U. S. in the near-term.
Total U. S. natural gas storage stood at 2.083 tcf as of last week, 14.8% above the five-year average for this time of year.
Originally posted at: Topnews.in