Natural Gas Prices Settled After Prices Traded

Natural gas prices settled after prices traded in range on larger-than-expected climb in U.S. supplies. Data from the U.S. Energy Information Administration showed that domestic supplies of natural gas rose by 106 billion cubic feet for the week ended June 2.

The 106 Bcf build was the largest weekly increase since September 2015. That compared with a gain of 81 billion cubic feet in the preceding week, an increase of 65 billion a year earlier and a five-year average rise of 94 billion cubic feet. Total natural gas in storage currently stands at 2.631 trillion cubic feet, according to the U.S.

Energy Information Administration, 11.2% lower than levels at this time a year ago but 9.0% above the five-year average for this time of year. Prices of the commodity have closely tracked weather forecasts in recent weeks, as traders try to gauge the impact of shifting outlooks on summer heating demand. Next week's EIA storage report shows a current forecast range of 80 Bcf/d to 91 Bcf/d with our estimate in the lower end.

If EIA reports an injection of 83 Bcf, it would be compared to 63 Bcf last year and 87 Bcf for the five-year average. Technically market is under fresh selling as market has witnessed gain in open interest by 5.03% to settled at 5654 while prices down -0.1 rupees, now Naturalgas is getting support at 194.9 and below same could see a test of 193.7 level, And resistance is now likely to be seen at 197.6, a move above could see prices testing 199.1.

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Suhani Verma

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