Naturalgas on MCX settled down -0.3% at 197.60 as prices turned lower after data showed that natural gas supplies in storage in the U.S. fell broadly in line with market expectations. 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. Total natural gas in storage currently stands at 2.092tcf, according to the US EIA, 16% lower than levels at this time a year ago but 12.7% above the five-year average for this time of year.
Meanwhile, updated weather forecasting models showed that warm to mild conditions will dominate most of the U.S. this weekend, even as a spring-like weather system with heavy showers and thunderstorms impacts the central US. Next week will be mostly mild to warm across the country with limited demand for heating or cooling besides the far northern U.S., according to forecasters at NatGasWeather.com.
Prices of the heating fuel are down around 20% so far this year as forecasts for warm winter weather weighed on heating demand expectations. Based on data from the National Oceanographic and Atmospheric Administration, this year’s extremely warm winter has pushed heating demand
for natural gas to nearly 20% below average. Technically market is getting support at 195.6 and below same could see a test of 193.5 level, And resistance is now likely to be seen at 199.7, a move above could see prices testing 201.7.