Naturalgas on MCX settled up 2.17% at 197.50 as fresh buying seen on the back of bearish weather revisions for the next 15 days and in contrast to what the implied opening was for gas prices. Over the weekend, heating demand was revised lower for the 3/31 week, which saw the storage report go from a storage draw to a storage injection.
Cool temperatures will sweep across the Great Lakes and eastern U.S. toward the middle of the week, according to forecasters at NatGasWeather.com, with overnight lows expected to drop well below freezing. Temperatures are expected to remain much colder than normal through the end of the week, with highs struggling to reach the 30s, while overnight lows drop into the teens to below 0F.
A fast-moving weather system will then impact the east-central U.S. Saturday into Sunday, followed by warming Monday, but again cooling off mid-week. 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.
Market participants looked ahead to weekly storage data due on Thursday, which is expected to show a draw in a range between 150 and 160 billion cubic feet in the week ended March 17. Technically market is under fresh buying as market has witnessed gain in open interest by 12.37% to settled at 5594 while prices up 4.2 rupees, now Naturalgas is getting support at 192.2 and below same could see a test of 186.8 level, And resistance is now likely to be seen at 200.9, a move above could see prices testing 204.2.