MCX Nickel under short covering; Resistance seen at 771.4
MCX Aluminium likely to move in a range of 134-136.4
MCX Mentha Oil under long liquidation
MCX Crude Oil may trade in range between 3398-3766
Silver market under long liquidation; Support seen at 35442
Natural Gas on MCX settled up 2.44% at 323.80 up but prices continued to whipsaw as volatility remains elevated while support seen following a smaller than expected draw in natural gas inventories.
Prices remain buoyed and only gave back 2.8% of the 11% gains natural gas experienced on Wednesday. Colder than normal weather is forecast to cover most of the United States for the next 6-10 and 8-14 days. The 6-10-day forecast is much colder than normal which is keeping a bid under natural gas prices.
Colder than normal weather will increase heating demand and driving up the demand for natural gas. With inventories below the 5-year range, prices could easily test the 5-year highs at 6.49. The Energy Information Administration reported that working gas in storage was 3,054 Bcf as of Friday, November 23, 2018. This represents a net decrease of 59 Bcf from the previous week.
Expectations where for a 72 Bcf decline. Stocks were 644 Bcf less than last year at this time and 720 Bcf below the five-year average of 3,774 Bcf. At 3,054 Bcf, total working gas is below the five-year historical range. With prices below the 5-year average range, and prices still 50% off the highs for the last 5-years there is still more room to run on natural gas. Cold weather will drive prices for the next 2-weeks.
Trading Ideas:
–Natural Gas trading range for the day is 305.3-336.3.
–Natural gas ended with gains but pared some of its gains on forecasts for warmer weather over the next two weeks.
–Earlier prices gained on colder forecasts for the next two weeks that was expected to cause utilities to keep pulling more gas from storage than usual in coming weeks.
–The U.S. Energy Information Administration (EIA) said utilities pulled a bigger-than-usual 59 billion cubic feet of gas from inventories during the cold U.S.
Courtesy: Kedia Commodities
Source: Commodityonline.com
