Naturalgas On MCX Settled Down -2.52%

Naturalgas on MCX settled down -2.52% at 193.8 on profit booking after prices continued its gains amid bullish weather forecasts that should provide a boost in demand for the fuel. However downside also seen limited also seen supported after data showed that domestic supplies in storage rose less than anticipated last week. The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. rose by 46 billion cubic feet in the week ended June 23, below forecasts for a build of 52 billion.

That compared with a gain of 61 billion cubic feet in the preceding week, an increase of 37 billion a year earlier and a five-year average rise of 72 billion cubic feet. Total natural gas in storage currently stands at 2.816 trillion cubic feet, according to the U.S. Energy Information Administration, 10.2% lower than levels at this time a year ago but 6.4% above the five-year average for this time of year. Meanwhile, updated weather forecasting models continued to point to increased summer demand in the weeks ahead.

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. Gas use typically hits a seasonal low with spring's mild temperatures, before warmer weather increases demand for gas-fired electricity generation to power air conditioning. 

Technically market is under fresh selling as market has witnessed gain in open interest by 2.77% to settled at 4521 while prices down -5 rupees, now Naturalgas is getting support at 191.8 and below same could see a test of 189.7 level, And resistance is now likely to be seen at 196.9, a move above could see prices testing 199.9.

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Suhani Verma

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