India, Oct. 7 -- Technically Natural Gas market is under long liquidation as market has witnessed drop in open interest by 35. 91% to settled at 4910 while prices down 42 rupees.
Now MCX Natural Gas is getting support at 408.8 and below same could see a test of 386.7 levels and resistance is now likely to be seen at 469 a move above could see prices testing 507.1.
Natural Gas yesterday settled down by 8.88% at 430.9 after Russia's President Putin said Gazprom will send more gas to Europe via Ukraine. Exports to Europe have been near a record so far on the year and could reach an all-time high in 2021 Putin added.
U.S. output starts to increase and a period of extreme volatility for energy prices around the world continues. Data provider Refinitiv said gas output in the U.S. Lower 48 states rose to an average of 91.8 billion cubic feet per day (bcfd) so far in October from 91.1 bcfd in September.
That compares with a monthly record of 95.4 bcfd in November 2019. Refinitiv projected that U.S. gas demand including exports would slide from an average of 85.7 bcfd this week to 84.0 bcfd next week as the weather turns milder.
With gas prices at or near record highs of $46 per mmBtu in Europe and $35 in Asia versus just over $6 in the United States traders said buyers around the world would keep purchasing all the LNG the United States could produce. Volatility in U.S. natural gas futures jumped to a record on the back of an energy crunch in major world markets that has sent prices soaring globally.
--Natural Gas trading range for the day is 386.7-507.1.
--Natural Gas prices dropped after Russia's President Putin said Gazprom will send more gas to Europe via Ukraine.
--Exports to Europe have been near a record so far on the year and could reach an all-time high in 2021 Putin added.
--U.S. output starts to increase and a period of extreme volatility for energy prices around the world continues.
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