MCX Crude Oil expected to trade in a range between 5174-5316
Copper market under long liquidation; Support seen at 444.5
Silver market under fresh selling; Support seen at 37320
MCX Nickel likely to move in a range of 889.3-933.7
MCX Aluminium may trade between 144.4-149.6 levels
Technically Natural Gas market is under fresh buying and getting support at 218.1 and below same could see a test of 211.8 levels and resistance is now likely to be seen at 228.5, a move above could see prices testing 232.6.
Natural Gas on MCX settled up 2.61% at 224.30 gained on short covering as prices surged higher buoyed by a smaller than expected build in natural gas inventories.
Yesterday the US EIA reported that U.S. natural gas stockpiles increased by 46bcf for the week ending September 21. Market was expecting a storage injection of around 62bcf. The five-year average for the week is an injection of 81bcf, and last year’s storage increase for the week totaled 58 billion cubic feet.
Natural gas inventories rose by 86 billion cubic feet in the week ending September 14. Inventories increased by 46 Bcf nearly 50% less than what was expected. In addition, the trajectory of inventories will now make it very tough to make up what is needed before the withdrawal season at the end of October.
The weather is forecast to be colder than normal throughout most of the Mid-west for the next 2-weeks which should drive up heating demand. NOAA is also reported that tropical storm Kurt is making its way into the Caribbean see with the potential to move upward into the Gulf of Mexico where it could cause issue for natural gas installations.
According to NatGasWeather.com for the September 27 to October 3 period, “High pressure will dominate the West and Southeast with highs of 80s and 90s.
A cool front extends from the east-central U.S. to the South, with heavy showers. A stronger cool front will push into the north-central U.S. the next few days with lows of 30s and 40s, locally 20s.
Trading Ideas:
–Natural Gas trading range for the day is 211.8-232.6.
–Natural gas rose following the release of a federal report showing a much smaller-than-expected weekly storage build.
–The U.S. Energy Information Administration (EIA) said utilities added a much smaller-than-expected 46 billion cubic feet (bcf) of gas into storage.
–The increase boosted stockpiles to 2.768 trillion cubic feet (tcf), leaving inventories 18.3 percent below the five-year average of 3.389 tcf for this time of year.
Source: Commodityonline.com
