Naturalgas on MCX settled up 0.87% at 219.7 continuing its gains after data showed that natural gas supplies in storage in the U.S. rose less than expected last week. Prices also seen supported after federal regulators limited construction on a pipeline, a move that may delay new Appalachian supplies from reaching the market. Another fundamental factor supportive to natural gas is the trade plan with China announced Thursday by the Trump administration.
Weather conditions have also been supportive to natural gas prices in recent sessions. Natgasweather.com, in its latest weather forecast for the week beginning May 12th, a weather system and reinforcing cool shot will push across the northeastern US through the weekend. It will result in slightly stronger than normal heating demand as lows drop into the 40’s.
The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. rose by 45 billion cubic feet in the week ended May 5, below forecasts for a build of 53 billion. That compared with a gain of 67 billion cubic feet in the preceding week, an increase of 68 billion a year earlier and a five-year average rise of 73 billion cubic feet. Total natural gas in storage currently stands at 2.301 trillion cubic feet, according to the U.S. Energy Information Administration, 13.9% lower than levels at this time a year ago but 12.0% 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 4.23% to settled at 9662 while prices up 1.9 rupees, now Naturalgas is getting support at 216.8 and below same could see a test of 214 level, And resistance is now likely to be seen at 221.2, a move above could see prices testing 222.8.