Technically Natural Gas market is under fresh selling as market has witnessed gain in open interest by 16.68% to settled at 4687 while prices down 16.4 rupees.
Now MCX Natural Gas is getting support at 392.1 and below same could see a test of 378.6 levels, and resistance is now likely to be seen at 428.2, a move above could see prices testing 450.8.
Natural Gas yesterday settled down by 3.89% at 405.7 on rising output and forecasts that milder than normal weather will continue through late October, keeping heating demand light and allowing utilities to inject more gas into storage than usual ahead of the winter.
Traders noted U.S. gas futures were down even though gas prices in Europe were up about 5% and U.S. oil futures were up about 3% to their highest since October 2014 on worries energy supplies could run short this winter.
Last week, gas prices in Europe and Asia soared to record highs on worries Europe will not have enough gas in storage for the winter heating season and as Asia’s demand for the fuel remains insatiable.
Those worries boosted U.S. gas prices to their highest since 2008 last week on expectations competition for gas from Europe and Asia would keep demand for U.S. liquefied natural gas (LNG) exports strong.
After U.S. gas futures closed at their highest since 2008 during last week’s record volatility, speculators cut their net long positions on the New York Mercantile and Intercontinental Exchanges to their lowest since April 2021 as some traders cashed in their winnings, according to data from the Commodity Futures Trading Commission (CFTC).
–Natural Gas trading range for the day is 378.6-450.8.
–Natural Gas fell on rising output and forecasts that milder than normal weather will continue through late October, keeping heating demand light.
–Pressure also mounting with U.S. gas production rising and heating demand expected to remain low for the rest of the month.
–However downside seen limited amid expectations that insatiable global demand for the fuel would keep U.S.
Courtesy: Kedia Commodities
Source: Comodity Online