15.6 C
New York
Tuesday, May 24, 2022

Natural Gas market under fresh selling; Support seen at 231.6

MCX Zinc may trade in a range between 194.1-199.9

MCX Copper likely to trade in range between 439.7-454.1

MCX Nickel likely to move in a range of 847.8-872.6

MCX Aluminium may trade between 142.7-146.9 levels

MCX Menthol Oil under fresh buying; Support seen at 1785.6

Technically Natural Gas market is under fresh selling as market has witnessed gain in open interest by 13.73% to settled at 3884 while prices down 1.9 rupees.

Now MCX Natural Gas is getting support at 231.6 and below same could see a test of 229.2 levels and resistance is now likely to be seen at 235.7, a move above could see prices testing 237.4.

Natural Gas on MCX settled down -0.81% at 233.90 prices moved lower on Monday edging down as warmer than normal weather is expected to cover most of the east coast during the next 2-weeks.

Cooler weather is expected to abate and should reduce heating demand.  Supply increased last week and the colder than normal weather increased heating demand. There are no tropical disturbances in the Atlantic or Caribbean.

Supply increases as production grows. According to data from the EIA, the average total supply of natural gas rose by 1% compared with the previous report week. Dry natural gas production grew by 1%  per day.

Total U.S. consumption of natural gas rose by 1% compared with the previous report week, according to data from the EIA. In the residential and commercial sectors, consumption increased by 10% as the country continues to shift from space cooling to space heating.

Natural gas consumed for power generation declined by 6% week over week. Industrial sector consumption increased by 2% week over week. Natural gas exports to Mexico increased 6% this report week.

Overall, market think that perhaps there are concerns about a warmer than usual winter in the United States, as an “El Niño” pattern seems to be forming. If that happens, then it’s very likely that there will be a lack of demand for heating in the northeastern US.

Trading Ideas:
–Natural gas trading range for the day is 229.2-237.4.
–Natural gas dropped as production hit a record high and forecasts showed warmer weather and lower heating demand than previously expected.
–Demand in the lower 48 U.S. states would slide to 86.8 billion cubic feet per day (bcfd) next week, down from Friday’s forecast of 87.8 bcfd.
–Output in the lower 48 states averaged a record-high 86.0 bcfd over the past 30 days.

Courtesy: Kedia Commodities

Source: Commodityonline.com

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