MCX Natural Gas may trade between 160.5-172.9 levels

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Technically MCX Natural Gas is getting support at 162.8 and below same could see a of 160.5 , and resistance is now likely to be seen at 169, a move above could see prices testing 172.9.

Natural Gas on MCX settled down 1.32% at 165 as midday forecasts called for less hot weather over the next two weeks than previously expected. The U.S. Energy Information Administration (EIA) said utilities added 81 billion cubic feet (bcf) of gas to inventories during the week ended July 5.

Refinitiv said gas output in the Lower 48 U.S. states could drop to a seven-week low of 87.2 bcfd on Thursday from a record high of 91.1 bcfd less than a week ago on July 5 due to the shut ins. U.S. dry natural gas production will rise to an all-time high of 91.35 billion cubic feet per day (bcfd) in 2019 from a record high of 83.39 bcfd last year, the Energy Information Administration’s Short Term Energy Outlook (STEO) said.

The latest July output projection for 2019 was up from EIA’s 90.60 bcfd forecast in . EIA also projected U.S. gas consumption would rise to an all-time high of 84.59 bcfd in 2019 from a record high 82.07 bcfd a year ago. The 2019 demand projection in the July STEO report was up from EIA’s 84.17 bcfd forecast for the year in .

EIA projected output in 2020 would rise to 92.79 bcfd but demand would slide to 84.54 bcfd. The agency forecast U.S. net gas exports would reach 5.1 bcfd in 2019 and 8.1 bcfd in 2020, up from 2.0 bcfd in 2018. The became a net gas exporter for the first time in 60 years in 2017.

Trading Ideas:
–Natural Gas trading range for the day is 160.5-172.9.
–Natural Gas dropped as midday forecasts called for less hot weather over the next two weeks than previously expected.
–The U.S. Energy Information Administration (EIA) said utilities added 81 billion cubic feet (bcf) of gas to inventories during the week ended July 5.
–U.S. dry natural gas production will rise to an all-time high of 91.35 billion cubic feet per day (bcfd) in 2019 from a record high of 83.39 bcfd last year.

Courtesy: Kedia Commodities

Source: Commodityonline.com