India, Sept. 21 -- Technically Natural Gas market is under long liquidation as market has witnessed drop in open interest by 31. 57% to settled at 4593 while prices down 10.2 rupees.
Now MCX Natural Gas is getting support at 365 and below same could see a test of 357.9 levels and resistance is now likely to be seen at 380.2 a move above could see prices testing 388.3.
Natural Gas yesterday settled down by 2.67% at 372.2 as forecasts for milder weather offset expectations record global gas prices would keep U.S. exports high.
With gas inventories in Europe at extremely low levels heading into the winter heating season when demand peaks prices in both Europe and Asia traded at all-time highs over $25 per million British thermal units (mmBtu).
That compares with just $5 in the United States prompting buyers around the world to keep purchasing all the gas the United States can produce.
U.S. LNG exports would have been higher this month but were reduced by a brief shutdown at Freeport LNG's plant in Texas during Tropical Storm Nicholas and the start of maintenance at Berkshire Hathaway Energy's Cove Point in Maryland.
Gas speculators last week cut their net long positions on the New York Mercantile and Intercontinental Exchanges for the first time since August in anticipation of the price drop that started late last week following a bigger-than-expected storage build according to data from the Commodity Futures Trading Commission (CFTC).
U.S. gas stockpiles however were still about 7.1% below the five-year normal for this time of year. Those low inventories like those in Europe helped boost U.S. gas prices to their highest in seven years early last week.
--Natural Gas trading range for the day is 357.9-388.3.
--Natural Gas eased as forecasts for milder weather offset expectations record global gas prices would keep U.S. exports high.
--Gas inventories in Europe at extremely low levels heading into the winter heating season when demand peaks.
--U.S. LNG exports would have been higher this month but were reduced by a brief shutdown at Freeport LNG's plant in Texas.
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