India, Sept. 20 -- Technically Natural Gas market is under long liquidation as market has witnessed drop in open interest by 11. 87% to settled at 6712 while prices down 7.1 rupees.
Now MCX Natural Gas is getting support at 375.8 and below same could see a test of 369.2 levels and resistance is now likely to be seen at 393 a move above could see prices testing 403.6.
Natural Gas yesterday settled down by 1.82% at 382.4 on projections for slightly lower consumption through next week but soaring global rates burnished the outlook for prices and kept them on course for a fourth straight weekly gain.
A blistering rally in European and Asian gas prices has invigorated demand for cheaper supply from the United States especially amid concerns over a shortage heading into the winter.
Also slowing the recent price rally utilities added a higher-than-expected 83 billion cubic feet of gas into storage in the week ended Sept. 10.Last week's injection boosted stockpiles to 3.006 trillion cubic feet (tcf) or 7.1% below the five-year average of 3.237 tcf for this time of year.
That means U.S. utilities have stored less gas than normal for the winter heating season when demand for the fuel peaks.Refinitiv said Freeport was still scheduled to take in about 0.2 billion cubic feet per day (bcfd) on Thursday up from 0.05 bcfd.
Gas in Europe and Asia traded near $23 and $26 per mmBtu respectively compared with just over $5 for the U.S. fuel. Refinitiv projected average U.S. gas demand including exports would fall from 86.6 bcfd this week to 85.3 bcfd next week as LNG exports decline.
--Natural Gas trading range for the day is 369.2-403.6.
--Natural Gas eased off on projections for slightly lower consumption through next week.
--A blistering rally in European and Asian gas prices has invigorated demand for cheaper supply from the United States.
--Also slowing the recent price rally utilities added a higher-than-expected 83 billion cubic feet of gas into storage in the week ended Sept. 10.
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