MCX Zinc likely to trade in a range between 194.7-199.9
MCX Copper expected to trade between 456-470.4 levels
MCX Crude Oil likely to trade in a range between 3932-4176
MCX Silver expected to trade in a range between 39394-40422
MCX Gold likely to trade in a range between 33007-33757
Technically Natural Gas market is under long liquidation as market has witnessed drop in open interest by 3.12% to settled at 4223 while prices down 0.9 rupees.
Now Natural Gas is getting support at 196.9 and below same could see a test of 194.3 levels and resistance is now likely to be seen at 201, a move above could see prices testing 202.5.
Natural Gas on MCX settled down -0.45% at 199.50 dropped in yesterday’s session on long liquidation while sentiments remain firm for prices as colder than normal weather is now expected to cover most of the United States for the next 2-weeks.
The 6-10 day forecast is much colder than the 8-14 day forecast. The Energy Information Administration is scheduled to report its natural gas inventory report on Thursday. Expectations are for a 162 Bcf declined according to estimize.
The U.S. suffered though multiple bouts of severe cold in the last few weeks, but the weather has done very little to rescue low natural gas prices. Henry Hub gas prices have been wallowing below $3/MMBtu for much of this winter, after briefly trading at multi-year highs late last year. Low prices are remarkable for several reasons.
First, the U.S. entered the peak winter demand season with gas storage at its lowest level in 15 years. Indeed, a thin cushion of gas sitting in storage helped spark the price rally in November. But the price spike was fleeting, a notable development for a second reason. Demand soared to new heights this winter, particularly during bouts of extreme cold.
Gas consumption broke record highs in late January after half of the U.S. suffered through a deep freeze.
–Natural Gas trading range for the day is 194.3-202.5.
–Natural Gas prices traded in range despite forecasts for less heating demand next week than previously expected.
–With forecasts for less severe weather, projected demand in the lower 48 U.S. states would average 127.5 billion cubic feet per day next week.
–Gas production in the Lower 48, meanwhile, held around 87.3 bcfd on Tuesday, its highest in almost two weeks.
Courtesy: Kedia Commodities