Naturalgas on MCX settled up 1.05% at 202 as support seen after the cold weather forecasts pointed to increased demand before the end of winter. The jump has been attributed to more usage than expected and revised weather predictions.
Although much of the United States enjoyed a much warmer than usual end of February, a massive blizzard is projected to strike the East Coast Monday night and Tuesday morning. Weather experts predicted the U.S. Northeast region could see 12 to 18 inches of snow from Monday to early Wednesday, while sub-freezing temperatures were forecast in the upper 20s Fahrenheit, the National Weather Service said.
New York City issued a snow alert for Monday night into Tuesday, expecting snowfall rates of up to 2 to 4 inches per hour Tuesday morning and afternoon, with gusts of up to 50 mph. Meanwhile, market participants looked ahead to weekly storage data due on Thursday, which is expected to show a draw in a range between 49 and 59bcf in the week ended March 10.
That compares with a withdrawal of 68bcf in the preceding week, 1 billion a year earlier and a five-year average drop of 85bcf. Total natural gas in storage currently stands at 2.295tcf, according to the U.S. EIA, 7.7% lower than levels at this time a year ago but 15.8% above the five-year average for this time of year.
Prices of the heating fuel are down around 17% so far this year as forecasts for warm winter weather weighed on heating demand expectations. Technically market is getting support at 200.7 and below same could see a test of 199.4 level, And resistance is now likely to be seen at 203.4, a move above could see prices testing 204.8.