Naturalgas on MCX settled up 0.68% at 193.3 as lingering cold weather continued to raise the prospect of greater demand. The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. declined by 53 billion cubic feet in the week ended March 10, missing market expectations for a drop of 56 billion cubic feet.
That compared with a withdrawal of 68 billion cubic feet in the preceding week, 1 billion a year earlier and a five-year average drop of 85 billion cubic feet. Total natural gas in storage currently stands at 2.242 trillion cubic feet, according to the U.S. Energy Information Administration, 9.5% lower than levels at this time a year ago but 17.6% above the five-year average for this time of year.
Prices of the heating fuel are down around 22% 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. Without significant demand for natural gas, inventories could stay near record levels and may even continue to pull prices even lower.
Reports of robust additions to the oil and gas rig count were not enough to deter futures bulls. According to data from Baker Hughes Inc. Oklahoma added 10 rigs to its weekly tally, while Texas only added four, Meanwhile, Canadian rigs are getting out of the patch before the roads turn to mud in the annual exodus known as spring breakup. Technically now Naturalgas is getting support at 190.2 and below same could see a test of 187.2 level, And resistance is now likely to be seen at 195, a move above could see prices testing 196.8.