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New York
Sunday, June 4, 2023

Natural Gas market under long liquidation; Support seen at 202.4

MCX Aluminium may trade between 140.6-144.4 levels

Nickel market under long liquidation; Support seen at 916.6

MCX Zinc may trade in a range between 161.9-173.1

MCX Copper may trade between 395.2-420.2 levels

MCX Crude Oil under long liquidation; Support seen at 4516

Technically Natural Gas market is under long liquidation as market has witnessed drop in open interest by 22.43% to settled at 5896 while prices down 3.4 rupees.

Now MCX Natural Gas is getting support at 202.4 and below same could see a test of 200.5 levels and resistance is now likely to be seen at 206.8, a move above could see prices testing 209.3.

Natural Gas on MCX settled down 1.64% at 204.20 traded lower prices drifted sideways for two days since spiking to the upside the U.S. Energy Information Administration (EIA) reported Thursday that U.S. natural gas stockpiles increased by 33 billion cubic feet for the week ending August 10.

A weather system with showers and comfortable highs of 70s and 80s will continue to bring showers to the Great Lakes and Ohio Valley the next few days. The West remains hot with highs of 90s to 100s, while the Southeast is also hot with highs of 90s.

High pressure now dominates the East Coast with highs of 90s across major Northeast cities through Friday for strong demand. However, additional weather systems are expected into the central and then east-central US this weekend into early next week with showers and cooling, easing demand.

Overall demand will be HIGH easing to MODERATE this weekend and next week. In its August revision to the Short-Term Energy Outlook, the EIA estimated that dry gas production rose by 8.4 billion cubic feet per day to 81.8 billion cubic feet in July despite record-high demand and relatively low inventory levels.

Daily production is forecast to rise to 84.3 billion cubic feet by the end of next year. Total U.S. stockpiles rose week over week to 22.3% below last year’s level and are now 20% below the five-year average.

Trading Ideas:
–Natural gas trading range for the day is 200.5-209.3.
–Natural gas fell after the release of a federal report, which showed a weekly storage build that was slightly higher than expected.
–The U.S. Energy Information Administration reported that utilities added 33 billion cubic feet (bcf) of gas into storage in the week of Aug. 10.
–The increase boosted stockpiles to 2.387 tcf, leaving inventories about 20 percent below the five-year average of 2.982 tcf for this time of year.

Courtesy: Kedia Commodities

Source: Commodityonline.com

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