MCX Crude Oil may trade in a range between 4734-4982
Fresh selling seen in MCX Nickel; Support seen at 946.1
MCX Aluminium likely to move in a range of 137.2-141.8
MCX Mentha Oil market under fresh buying; Resistance seen at 1622.6
Short covering seen in MCX Cotton
Technically Natural Gas market is under fresh selling as market has witnessed gain in open interest by 13.13% to settled at 4387 while prices down 2.6 rupees.
Now MCX Natural Gas is getting support at 188.2 and below same could see a test of 186.8 levels and resistance is now likely to be seen at 192, a move above could see prices testing 194.4.
Natural Gas on MCX settled down -1.35% at 189.6 as the market ignored the storage deficit and focused instead on growing, record production. The Energy Information Administration’s (EIA) weekly natural gas storage report showing a miss to the low side of most estimates.
Improving weather conditions and relatively high production levels remain the primary drivers of the price action. According to the EIA, producers injected 51 Bcf into Lower 48 gas stocks for the week-ended July 6, lower than the 59 Bcf injected last year and well-below the five-year average 77 Bcf build.
In recent months, the biggest factor affecting the gas market has been speculation on whether production, which is at record levels, would be enough to cut the vast storage deficit and boost stockpiles to near-normal levels before the winter.
Production in the lower 48 U.S. states averaged a record high 80.5 billion cubic feet per day (bcfd) over the past 30 days. On a daily basis, output rose to 80.8 bcfd from a low of 80.2 bcfd earlier in the week. That compared with the all-time daily high of 81.4 bcfd hit on July 5, according to data.
Meteorologists forecast that temperatures, which have been higher than normal since the start of June, would remain above normal through at least late July, but not quite as high as previously expected. To escape the heat, consumers have cranked up their air conditioners, prompting power generators to burn more gas than usual so far this summer season.
Trading Ideas:
–Naturalgas trading range for the day is 186.8-194.4.
–Natural gas dropped as the market ignored the storage deficit and focused instead on growing, record production.
–The Energy Information Administration’s (EIA) weekly natural gas storage report showing a miss to the low side of most estimates.
–According to the EIA, producers injected 51 Bcf into Lower 48 gas stocks for the week-ended July 6, lower than the 59 Bcf injected last year.
Courtesy: Kedia Commodities
Source: Commodityonline.com
