MCX Zinc may trade in a range between 169.3-179.7
MCX Copper may trade in a range between 407.2-421.4
Crude Oil market under long liquidation; Support seen at 3627
MCX Nickel may move in a range of 776.3-802.7
MCX Aluminium likely to move in a range of 128.9-131.9
Natural Gas on MCX settled unchanged at 211.20 while prices recovered from day’s low as support seen after the U.S. Energy Information Administration (EIA) reported that U.S. natural gas stockpiles decreased by 91 billion cubic feet for the week ending January 4.
Markets were expecting a storage withdrawal in a range of 50 billion to 115 billion cubic feet. The five-year average for the week is a withdrawal of 182 billion cubic feet, and last year’s withdrawal totaled 359 billion cubic feet, an all-time record driven by extremely cold weather along the east coast.
Natural gas inventories fell by 20 billion cubic feet in the week ending December 28. The U.S. government and updated weather forecasts that may or may not show the return of cold temperatures later in the month.
The price action definitely shows investors are waiting for something, but is the market creating a support base for a short-covering rally, or simply pausing before the next plunge in prices? A strong cold front will push across the Great Lakes and Northeast the next several days with lows reaching the 0s to 20s for strong demand.
However, much of the rest of the country will be mostly mild with highs of 40s to 70s to counter. Weather systems with rain and snow will track into the West Coast with rain and snow, but with only slight cooling. This weekend into early next week will bring weather systems across the southern and eastern US with rain and snow, followed by warming mid next week.
–Natural gas trading range for the day is 205.3-220.9.
–Natural gas eased as the market focused more on a report showing a much smaller-than-usual weekly storage withdrawal than forecasts for colder weather later in the month.
–The U.S. Energy Information Administration (EIA) said utilities pulled a smaller-than-normal 87 billion cubic feet of gas from inventories.
–The withdrawal, which included a small reclassification of working gas to base gas, cut stockpiles to 2.614 trillion cubic feet.
Courtesy: Kedia Commodities