Naturalgas on MCX settled down -1.66% at 207.20 fell in yesterday's session as investors began to contemplate how much natural gas will be added to storage as spring begins. Yesterday the US EIA reported that US natural gas stocks decreased by 43bcf for the week ending March 24. Traders were expecting a storage decline of 43bcf.
The five-year average for the week is a withdrawal of around 27bcf, and last year's storage increase for the week totaled 19bcf. Natural gas inventories fell by 150bcf in the week ending March 17, the largest ever recorded that late in the heating season. Week over week, U.S. demand averaged nearly 16.9bcfpd lower than the previous week as temperatures warmed over the majority of the country.
The large residential and commercial centers of the Midwest and Northeast regions saw temperatures average 14.8 and 10.9 degrees, respectively, warmer than the previous week contributing greatly to the week-over-week decline in U.S. demand. Stockpiles fell week over week to 17% below last year's level and are now 13.9% above the five-year average.Meanwhile, traders continued to monitor shifting early-spring weather forecasts.
Weather systems will track across the country the next several days with rain, snow, and thunderstorms, but with limited cold air as they play out spring-like, according to forecasters at NatGasWeather.com. There remains potential for a bit colder system from April 7 through the 10th and will be dependent on how a weather system tracking over the southern U.S. phases with a cold blast over the Midwest. Technically market is getting support at 204.4 and below same could see a test of 201.7 level, And resistance is now likely to be seen at 210, a move above could see prices testing 212.9.