MCX Natural Gas under short covering; Support seen at 150.8

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MCX under short covering; Support seen at 37790

Technically Natural Gas market is under short covering as market has witnessed drop in by 5.12% to settled at 14078 while prices up 0.2 rupees.

Now MCX Natural Gas is getting support at 150.8 and below same could see a test of 148.9 , and resistance is now likely to be seen at 156.2, a move above could see prices testing 159.7.

Natural Gas settled flat as forecasts for more heat than previously expected next week offset calls for less heat. The U.S. () said utilities added 49 billion cubic feet (bcf) of gas into storage during the week ended Aug. 9.

The amount of gas in inventory has remained below the five-year average since September 2017. fell as low as 33% below that average in March 2019. But with production expected to keep growingstockpiles should reach a near-normal 3.7 tcf by the end of the summer injection season on Oct. 31.

With warmer weather expected next week, Refinitiv projected demand in the lower 48 U.S. states would rise from an average of 90.3 billion cubic feet per day (bcfd) this week to 92.3 bcfd next week. Gas production in the Lower 48 states, meanwhile, edged up to 91.4 bcfd on Wednesday from a one-week low of 91.1 bcfd on Tuesday due to small declines in Texas and West Virginia.

Output hit that all-time high earlier in the week even though a section of Enbridge Inc’s Texas Eastern pipeline remained shut in Kentucky after an explosion on Aug. 1 that killed one person. U.S. dry natural gas production will rise to an all-time high of 91.03 billion cubic feet per day (bcfd) in 2019, breaking last year’s record of 83.39 bcfd.

Trading Ideas:
–Natural Gas trading range for the day is 148.9-159.7.
–Natural Gas settled flat as forecasts for more heat than previously expected next week offset calls for less heat.
–The U.S. Energy Information Administration (EIA) said utilities added 49 billion cubic feet (bcf) of gas into storage during the week ended Aug. 9.
–U.S. dry natural gas production will rise to an all-time high of 91.03 billion cubic feet per day (bcfd) in 2019, breaking last year’s record of 83.39 bcfd.

Courtesy: Kedia Commodities

Source: Commodityonline.com