Natural gas on MCX settled down -2.78% at 181.90 on profit booking as traders looked ahead to fresh weekly information on U.S. gas inventories to gauge the strength of demand for the fuel. Pressure also mounted as working gas storage is at record high for this time of year. 

 While sentiments still remain firm on expectations warmer weather will increase fuel demand for power generation as cooling demand rises. The U.S. Energy Information Administration's storage report slated for release on Thursday is expected to show a build in a range between 55 to 66 billion cubic feet for the week ending June 17.

That compared with builds of 69 billion cubic feet in the prior week, 73 billion a year earlier and a five-year average of 88 billion cubic feet. Total U.S. natural gas storage stood at 3.041 trillion cubic feet, 20.8% higher than levels at this time a year ago and 23.2% above the five-year average for this time of year.

Natural gas prices are up nearly 40% since late May as expectations have grown that hot summer weather will lead to heavy demand. Technically market is under long liquidation as market has witnessed drop in open interest by -27.71% to settled at 7781 while prices down -5.2 rupee, now Natural gas is getting support at 179.5 and below same could see a test of 177.1 level, And resistance is now likely to be seen at 185.9, a move above could see prices testing 189.9.                                         

                           Trading Ideas                                

Naturalgas trading range for the day is 177.1-189.9.                                        
                                        
Total U.S. natural gas storage stood at 3.041 trillion cubic feet, 20.8% higher than levels at this time a year ago.
                                        
EIA's storage report slated for release on Thursday is expected to show a build in 59bcf for the week ending June 17.