MCX Settled Up 0.75% Natural Gas

On MCX settled up 0.75% at 214.70 prices sustained it's gains which Nymex Natural-gas prices rose to a two-month high after government data showed a smaller-than-expected storage addition for last week. The U.S. Energy Information Administration said natural-gas stockpiles grew by 2 billion cubic feet in the week ended Friday, compared to the 7.8 bcf expectation. 

The report is a widely watched measure of supply and demand. A strong spring storm with rain and snow will track across the eastern US the next several days with heavy showers and thunderstorms ahead of the warm front, and a wintry mix behind it. With lows dropping 10-25°F below normal, nat gas demand will return to stronger than normal levels. The West will begin to cool as Pacific weather systems arrive. 

Demand will ease back below normal early next week as high pressure with comfortable temperatures of 60s to 80s returns to the central, southern, and eastern US while the West remains the exception to the cooler side. Overall, nat gas demand will MODERATE-HIGH through Saturday and then LOW Sun-Tue. 

Yesterday's natural gas storage in the U.S. rose by 2 billion cubic feet made total natural gas in storage currently stands at 2.051 trillion cubic feet, according to the US EIA, 17.2% lower than levels at this time a year ago but 12.9% above the five-year average for this time of year. Technically market is getting support at 210.9 and below same could see a test of 207 level, And resistance is now likely to be seen at 217.2, a move above could see prices testing 219.6.

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Suhani Verma

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