MCX Zinc under Fresh buying; Support seen at 186.3
Short covering seen in MCX Copper; Resistance seen at 455.8
MCX Crude Oil under fresh buying; Resistance seen at 5387
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MCX Aluminium under fresh buying; Support seen at 147
Technically Natural Gas market is under long liquidation as market has witnessed drop in open interest by 41.74% to settled at 4026 while prices down 6.3 rupees.
Now MCX Natural Gas is getting support at 215.4 and below same could see a test of 212.9 level, And resistance is now likely to be seen at 221.7, a move above could see prices testing 225.5.
Naturalgas on MCX settled down 2.81% at 218 on expectations of higher production and lower heating demand over the next couple of weeks. With U.S. producers raising production, the supply side of the situation should finally catch up with storage.
There is a rush to open more pipelines ahead of the Iranian sanctions, which is going to lead to more gas production in the Permian Basin, helping replenish stocks depleted due to a record hot summer.
Related Post
The U.S. Energy Information Administration (EIA) said utilities added a much smaller-than-expected 46 billion cubic feet (bcf) of gas into storage during the warmer-than-usual week ended Sept.
However, utilities to add a bigger-than-normal 98 bcf into storage during the week through Sept. 28 as the weather cools and production keeps reaching record highs. That cooler weather is expected to eliminate most air-conditioning demand but will likely not be cold enough to produce much heating demand.
Nevertheless, severely depleted gas inventories will remain supportive of the front-month price during October and into the 2018-2019 gas withdrawal season, increasing the risk of supply constraints in parts of the country during winter.
Production in the Lower 48 U.S. states averaged a record high 83.9 billion cubic feet per day (bcfd) over the past 30 days. On a daily basis, output rose to an all-time high of 85.2 bcfd on Monday.
Trading Ideas:
–Natural Gas trading range for the day is 212.9-225.5.
–Natural Gas fell on expectations of higher production and lower heating demand over the next couple of weeks.
–With U.S. producers raising production, the supply side of the situation should finally catch up with storage.
–EIA said utilities added a much smaller-than-expected 46 billion cubic feet (bcf) of gas into storage during the warmer-than-usual week ended Sept.
Courtesy: Kedia Commodities
Source: Commodityonline.com
