Technically Natural Gas market is under fresh buying as market has witnessed gain in open interest by 38.24% to settled at 5227 while prices up 22.3 rupees.
Now MCX Natural Gas is getting support at 382.3 and below same could see a test of 359.3 levels, and resistance is now likely to be seen at 421.5, a move above could see prices testing 437.7.
Natural Gas yesterday settled up by 5.82% at 405.2 supported by forecasts for slightly higher heating demand than previously expected.
That increase came even though near record output caused last week’s storage withdrawal to be smaller-than-usual, as expected.
The U.S. Energy Information Administration (EIA) said utilities pulled 21 billion cubic feet (bcf) of gas from storage during the week ended Nov. 19, which was the first withdrawal of the 2021-2022 winter season.
Last week’s withdrawal cut stockpiles to 3.623 trillion cubic feet (tcf), or 1.6% below the five-year average of 3.681 tcf for this time of year.Data provider Refinitiv said output in the U.S. Lower 48 states averaged 96.2 billion cubic feet per day (bcfd) so far in November, up from 94.1 bcfd in October and a monthly record of 95.4 bcfd in November 2019.
Refinitiv projected average U.S. gas demand, including exports, would rise from 111.4 bcfd this week to 112.9 bcfd next week as the weather turns seasonally colder and homes and businesses crank up their heaters.
The amount of gas flowing to U.S. LNG export plants averaged 11.2 bcfd so far in November, up from 10.5 bcfd in October as the sixth train at Cheniere Energy Inc’s Sabine Pass plant in Louisiana started producing LNG.
Trading Ideas:
–Natural Gas trading range for the day is 359.3-437.7.
–Natural Gas jumped supported by forecasts for slightly higher heating demand than previously expected.
–That increase came even though near record output caused last week’s storage withdrawal to be smaller-than-usual, as expected.
–EIA said utilities pulled 21 bcf of gas from storage during the week ended Nov. 19, which was the first withdrawal of the 2021-2022 winter season.
Courtesy: Kedia Commodities
Source: Comodity Online
