MCX Settled Up 0.48% At 187.4 - Ways2Capital

On MCX settled up 0.48% at 187.4 as the storage data helped boost confidence that storage builds would be limited during the summer period, although any shift to cooler weather conditions could quickly erode this confidence. In the near term, there were still expectations of slightly higher than normal gas demand due to the influence of hot weather conditions in the South and South West. 

The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. rose by 61 billion cubic feet in the week ended June 16, above forecasts for a build of 58 billion. That compared with a gain of 78 billion cubic feet in the preceding week, an increase of 62 billion a year earlier and a five-year average rise of 82 billion cubic feet. Total natural gas in storage currently stands at 2.770 trillion cubic feet, according to the U.S.

Energy Information Administration, 10.4% lower than levels at this time a year ago but 7.4% above the five-year average for this time of year. Meanwhile, warm to hot conditions will return over the Great Lakes and East with highs back into the 80s to lower 90s in the next three-to-five days. 

Natural gas prices have closely tracked weather forecasts in recent weeks, as traders try to gauge the impact of shifting outlooks on summer heating demand. Technically market is under short covering as market has witnessed drop in open interest by -15.73% to settled at 4302 while prices up 0.9 rupees, now Naturalgas is getting support at 184.1 and below same could see a test of 180.7 level, And resistance is now likely to be seen at 191.1, a move above could see prices testing 194.7.

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Suhani Verma

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