Home Commodity Market News MCX Natural Gas likely to move in a range of 179.3-187.9

MCX Natural Gas likely to move in a range of 179.3-187.9

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Technically MCX Natural Gas is getting support at 180.8 and below same could see a of 179.3 level, And resistance is now likely to be seen at 185.1, a move above could see prices testing 187.9.

Natural Gas on MCX settled down 2.57% at 182.3 on forecasts for output to increase and demand to decline as the amount of gas flowing to liquefied natural gas (LNG) export terminals drops.

Output in the Lower 48 U.S. states jumped to 88.2 billion cubic feet per day (bcfd) from a three-month low of 86.2 bcfd, according to Refinitiv Eikon data, after production in West Virginia returned following a problem at a MarkWest processing facility.

The current output, however, is still well short of the all-time daily high of 90.4 bcfd hit on March 29. Market volatility has remained relatively low since the weather started warming for the spring, just like this time last year, amid a widely held belief that record and growing production will meet any increase in demand.

Demand in the Lower 48 states would slip to an average of 76.3 bcfd next week from its forecast of 76.6 bcfd on Monday. That compares with an expected 76.4 bcfd average this week. Utilities likely added 104 billion cubic feet of gas to inventories during the week ended May 17.

That compares with an injection of 93 bcf during the same week last year and a five-year (2014-2018) average increase of 88 bcf for the period. U.S. dry natural gas production will rise to an all-time high of 90.27 billion cubic feet per day (bcfd) in 2019 from a record high of 83.40 bcfd last year, the Energy Information Administration’s Short Term Energy Outlook (STEO) said.

Trading Ideas:
–Natural Gas trading range for the day is 179.3-187.9.
–Natural Gas dropped on forecasts for output to increase and demand to decline as the amount of gas flowing to liquefied natural gas (LNG) export terminals drops.
–Output in the Lower 48 U.S. states jumped to 88.2 billion cubic feet per day (bcfd) from a three-month low of 86.2 bcfd.
–Market volatility has remained relatively low since the weather started warming for the spring, just like this time last year.

Courtesy: Kedia Commodities

Source: Commodityonline.com