MCX settled up 4.21% at 212.8 rose to a two-month high Tuesday, a move likely tied to falling output and rising power-plant outages that could lead to more demand for gas-fired power. The jump is part of a monthlong rally that already has lifted gas 28% from its low of 2017. A glut that has lingered for years and often led to historically low prices finally appears to be causing output cuts and new demand to reverse the market.
Also a strong spring storm with heavy showers and thunderstorms will track across the southern and east-central U.S. and then across the Northeast in the first half of the coming week, according to forecasters at NatGasWeather.com. However a strong spring storm with heavy showers and thunderstorms will track across the eastern US today. However, there’s limited cold air associated with it and will result in lighter than normal overall national nat gas demand when considering much of the rest of the country will be mild to warm with highs of upper 50s to 80s besides the Rockies where a fresh cold blast is sweeping through.
This cold shot will intensify into a strong spring storm the next few days with a track across the eastern US late in the week through the coming weekend to bring an increase in nat gas demand to above normal levels. While total natural gas in storage currently stands at 2.049 trillion cubic feet, according to the U.S.
Energy Information Administration, 17.1% lower than levels at this time a year ago but 12.2% above the five-year average for this time of year. Technically market is getting support at 207.2 and below same could see a test of 201.7 level, And resistance is now likely to be seen at 215.8, a move above could see prices testing 218.9.