India, Sept. 22 -- Technically Natural Gas market is under long liquidation as market has witnessed drop in open interest by 23. 23% to settled at 3526 while prices down 19.1 rupees.
Now MCX Natural Gas is getting support at 344.7 and below same could see a test of 336.4 levels and resistance is now likely to be seen at 366.5 a move above could see prices testing 380.
Natural Gas yesterday settled down by 5.13% at 353.1 on forecasts mild weather will decrease air conditioning demand over the next week by more than previously expected.
Prices fell even though gas in Europe and Asia continued to hit fresh record highs over $25 per million British thermal units (mmBtu) versus just about $5 for the U.S. fuel prompting buyers around the world to keep purchasing all the liquefied natural gas (LNG) the United States can produce.
U.S. gas stockpiles were about 7.1% below their five-year normal for this time of year. Refinitiv said gas output in the U.S. Lower 48 states fell to an average of 90.6 bcfd so far in September down from 92.0 bcfd in August due mostly to Ida-related losses along the Gulf Coast.
That compares with a monthly record high of 95.4 bcfd in November 2019. About 0.6 bcfd or 27% of gas production in the U.S. Gulf of Mexico remained shut-in since Ida hit Louisiana on Aug. 29 according to government data.
With the coming of milder weather Refinitiv projected average U.S. gas demand including exports would fall from 86.3 bcfd this week to 83.5 bcfd next week as air conditioning use declines. This week's forecast was lower than Refinitiv expected on Monday.
--Natural Gas trading range for the day is 336.4-380.
--Natural Gas slipped on forecasts mild weather will decrease air conditioning demand over the next week by more than previously expected.
--IEA: Russia has the capacity to do more to increase gas supplies to Europe.
--U.S. gas stockpiles were about 7.1% below their five-year normal for this time of year.
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 firstname.lastname@example.org