Naturalgas On MCX Settled Up 0.88%

Naturalgas on MCX settled up 0.88% at 194 started the week with flat-to-higher as traders continue to interpret the current weather forecasts and their impact on future demand. Prices hold 194 level settled with strong gains as updated weather forecasting models pointed to increased summer demand in the weeks ahead. A weak weather system with showers and comfortable temperatures will sweep across the Northeast Monday for regionally light demand.

However, hot high pressure over the western, central, and southern US will strengthen and expand as the week progresses, eventually dominating almost the entire country besides the far northern US with highs of 90s and 100s for strong national demand. Cooling will return to the northeastern US Fri through next weekend to ease national demand slightly.

Overall, nat gas demand will be high to very high. Market participants looked ahead to weekly storage data due on Thursday, which is expected to show a build in a range between 27 and 38 billion cubic feet in the week ended July 14. Total natural gas in storage currently stands at 2.945 trillion cubic feet, according to the U.S. Energy Information Administration, 8.9% lower than levels at this time a year ago but 5.9% above the five-year average for this time of year.

Technically market is under short covering as market has witnessed drop in open interest by -9.08% to settled at 4017 while prices up 1.7 rupees, now Naturalgas is getting support at 192.1 and below same could see a test of 190.2 level, And resistance is now likely to be seen at 196.1, a move above could see prices testing 198.2.

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Suhani Verma

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