India, Nov. 23 -- Technically Natural Gas market is under long liquidation as market has witnessed drop in open interest by 30. 32% to settled at 1809 while prices down 17.8 rupees.
Now MCX Natural Gas is getting support at 346.8 and below same could see a test of 336.1 levels and resistance is now likely to be seen at 368.9 a move above could see prices testing 380.3.
Natural Gas yesterday settled down by 4.74% at 357.6 on forecasts for milder than normal weather and lower demand over the next two weeks than previously expected.Prices also slumped on near record U.S. output healthy U.S. stockpiles and a decline in European gas futures.
Global gas prices hit record highs over the past couple of months as utilities around the world scramble for LNG cargoes to replenish extremely low stockpiles in Europe and meet insatiable demand in Asia where energy shortfalls have caused power blackouts in China.
Following those global gas prices U.S. futures jumped to a 12-year high in early October but have pulled back since because the United States has plenty of gas in storage and ample production for the winter.
Overseas prices continue to trade about six times higher than U.S. futures. Data provider Refinitiv said output in the U.S. Lower 48 states averaged 96.1 billion cubic feet per day (bcfd) so far in November up from 94.1 bcfd in October and a monthly record of 95.4 bcfd in November 2019.
Refinitiv projected average U.S. gas demand including exports would rise to 114.1 bcfd next week from 111.4 bcfd this week as the weather turns seasonally colder and homes and businesses crank up their heaters.
--Natural Gas trading range for the day is 336.1-380.3.
--Natural Gas dropped on forecasts for milder than normal weather and lower demand over the next two weeks than previously expected.
--Prices also slumped on near record U.S. output healthy U.S. stockpiles and a decline in European gas futures.
--EIA said utilities added 26 billion cubic feet (bcf) of gas into storage during the week ended Nov. 12. U.S.
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 email@example.com