Crude Oil market under short covering; Support seen at 4883
Long liquidation seen in MCX Cotton
MCX Cardamom likely to move in a range of 1370.7-1433.7
Jeera market under fresh selling; Support seen at 19860
NCDEX Turmeric under short covering; Resistance seen at 6779
Natural Gas on MCX settled down 1.63% at 199.7 on forecasts for demand to drop in a couple of weeks due to seasonally cooler weather that will cut air conditioning without generating much heating use.
Demand decline should allow utilities to inject more of the record amount of gas now being produced into storage over the next several weeks ahead of the winter heating season.
Production in the Lower 48 U.S. states, meanwhile, averaged a record high 83.4 bcfd over the past 30 days. On a daily basis, output hit 83.9 bcfd, putting it close to the all-time high of 84.0 bcfd on Aug. 27, according to data.
U.S. dry natural gas production should rise to an all-time high of 80.96 billion cubic feet per day (bcfd) in 2018 from 73.55 bcfd in 2017, according to the Energy Information Administration’s Short Term Energy Outlook (STEO).
The latest September output projection for 2018 was down from the EIA’s 81.10-bcfd forecast in August but would still easily top the current annual record high of 74.15 bcfd produced on average in 2015. EIA also projected U.S. gas consumption would rise to an all-time high of 79.81 bcfd in 2018 from 74.20 bcfd in 2017.
That 2018 demand projection in the September STEO report was up from EIA’s 79.57-bcfd forecast for the year in its August report and would top the current annual record high of 75.10 bcfd consumed on average in 2016. In 2019, EIA projected output would rise to 84.65 bcfd, while usage would slip to 79.67 bcfd.
Trading Ideas:
–Natural gas trading range for the day is 196.8-204.2.
–Natural gas dropped on forecasts for demand to drop in a couple of weeks due to seasonally cooler weather.
–Production in the Lower 48 U.S. states, meanwhile, averaged a record high 83.4 bcfd over the past 30 days.
–U.S. dry natural gas production should rise to an all-time high of 80.96 billion cubic feet per day (bcfd) in 2018 from 73.55 bcfd in 2017, according to EIA report.
Source: Commodityonline.com
