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Natural Gas declines ahead of the inventory data

Natural Gas futures are trading lower today after a sharp recovery witnessed on Tuesday on investors closing out bearish trades against the market by buying futures to cover their positions.

Natural Gas for December delivery is trading 0.96% lower today at USD 3.71/mmtbu. The prices had hit a high of USD 3.763 on profit-booking in the short positions. However, the prices have come under pressure ahead of the inventory data due for release tomorrow. U.S. Energy Information Administration's storage report is expected to show an increase of 85 billion cubic feet for the week ending Oct. 24. Natural gas storage in the U.S. rose by 94 billion cubic feet last week.

Moreover, the rise in prices witnessed yesterday was due to the traders squaring –off their positions ahead of the November’s contract expiration.

Natural Gas Technical levels

Natural Gas has an immediate resistance at 3.76, above which prices can rise to 3.83 levels. On the flip side, prices can fall to 3.6 levels if the immediate support of 3.70 is breached.

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