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Thursday, May 26, 2022

MCX Natural Gas under long liquidation; Resistance seen at 439.3

Technically Natural Gas market is under long liquidation as market has witnessed drop in open interest by 13.29% to settled at 5391 while prices down 9.7 rupees.

Now MCX Natural Gas is getting support at 406.1 and below same could see a test of 393.1 levels, and resistance is now likely to be seen at 439.3, a move above could see prices testing 459.5.

Natural Gas yesterday settled down by 2.26% at 419.1 on expectations the United States will have enough gas supplies for this winter.

That price decline came despite continued strong demand for U.S. liquefied natural gas (LNG) exports due to dangerously low gas stockpiles in Europe ahead of the winter and insatiable demand for the fuel in Asia.

Prices in Europe and Asia soared to fresh records that were over five times higher than U.S. prices. The U.S. Energy Information Administration said utilities added a bigger-than-usual 88 billion cubic feet of gas into storage during the week ended Sept. 24.

Last week’s injection boosted stockpiles to 3.170 trillion cubic feet, or 6.3% below the five-year average of 3.383 tcf for this time of year. U.S. inventories to reach about 3.5 tcf at the start of the winter heating season in November, would be a comfortable level even though it falls short of the 3.7 tcf five-year average for that time of year.

Despite reductions at several plants this month, data provider Refinitiv said the amount of gas flowing to U.S. LNG export plants has slipped modestly to an average of 10.4 billion cubic feet per day so far in September from 10.5 bcfd in August.

Trading Ideas:
–Natural Gas trading range for the day is 393.1-459.5.
–Natural Gas fell on expectations the United States will have enough gas supplies for this winter.
–The U.S. Energy Information Administration said utilities added a bigger-than-usual 88 billion cubic feet of gas into storage during the week ended Sept. 24.
–That price decline came despite continued strong demand for U.S. LNG exports due to dangerously low gas stockpiles in Europe.

Courtesy: Kedia Commodities

Source: Comodity Online

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