MCX Natural Gas under fresh selling Resistance seen at 199.7

India, Jan. 12 -- Technically Natural Gas market is under fresh selling as market has witnessed gain in open interest by 13. 42% to settled at 6365 while prices down 0.8 rupees.

Now MCX Natural Gas is getting support at 192.4 and below same could see a test of 187.8 levels and resistance is now likely to be seen at 199.7 a move above could see prices testing 202.4.

Natural Gas yesterday settled down by 0.4% at 196.9 on forecasts for steady milder-than-normal weather over the next two weeks.

Price decline came despite a rise in futures in Asia to their highest since 2013 for a second day in a row prompting global buyers to seek more U.S. liquefied natural gas (LNG).

In the spot market meanwhile a shot of cold boosted heating demand in the U.S. Mid-Atlantic and pushed next-day gas at the Dominion South hub in southwest Pennsylvania to their highest since November 2019.

Data provider Refinitiv said output in the Lower 48 U.S. states averaged 91.9 billion cubic feet per day (bcfd) so far in January.That compares with an eight-month high of 91.5 bcfd in December 2020 and an all-time monthly high of 95.4 bcfd in November 2019.

The number of rigs drilling for natural gas in the United States rose by 1 this week to 84 data from oil services firm Baker Hughes showed.

U.S. natural gas prices in 2021 at the Henry Hub benchmark in Louisiana will likely rise to their highest since 2018 as governments ease lockdowns and demand rises faster than producers can restore output shut during the 2020 coronavirus-linked price drop.

Trading Ideas:

--Natural Gas trading range for the day is 187.8-202.4.

--Natural Gas slipped on forecasts for steady milder-than-normal weather over the next two weeks.

--Data provider Refinitiv said output in the Lower 48 U.S. states averaged 91.9 billion cubic feet per day (bcfd) so far in January.

--U.S. Henry Hub natgas annual price forecasts 2021 to rise to 3 year high.

Courtesy: Kedia Commodities Published by HT Digital Content Services with permission from Commodity Online. For any query with respect to this article or any other content requirement, please contact Editor at contentservices@htlive.com