Naturalgas on MCX settled up 1.79% at 210.70 rose on Wednesday as investors bet that the amount of natural gas in storage may fall short of demand in the summer season. 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. Natural gas prices have closely tracked weather forecasts in recent weeks, as traders try to gauge the impact of shifting forecasts on early-spring demand. The heating season from November through March is the peak demand period for U.S. gas consumption.
Meanwhile, market participants looked ahead to weekly storage data due on Thursday, which is expected to show a draw of 37bcf in the week ended March 24. That compares with a withdrawal of 150bcf in the preceding week, a decline of 25 billion a year earlier and a five-year average drop of 27bcf. Total natural gas in storage currently stands at 2.092 trillion cubic feet, according to the U.S.
Energy Information Administration, 16% lower than levels at this time a year ago but 12.7% above the five-year average for this time of year. Technically market is under fresh buying as market has witnessed gain in open interest by 26.31% to settled at 9207 while prices up 3.7 rupees, now Naturalgas is getting support at 206.8 and below same could see a test of 203 level, And resistance is now likely to be seen at 212.9, a move above could see prices testing 215.2.