Mentha Oil market under fresh selling; Support seen at 1599.4
MCX Aluminium under fresh buying; Support seen at 130.7
MCX Nickel may trade in a range between 848.1-901.3
Zinc market under fresh buying; Support seen at 186.2
Copper market under short covering; Support seen at 436.2
Technically Natural Gas market is under short covering as market has witnessed drop in open interest by 9.4% to settled at 6608 while prices up 3.2 rupees.
Now MCX Natural Gas is getting support at 183.2 and below same could see a test of 179.7 levels and resistance is now likely to be seen at 188.8, a move above could see prices testing 190.9.
Natural Gas on MCX settled up 1.74% at 186.6 on forecasts of colder weather and more heating demand over the next two weeks than previously expected.
Implied volatility for gas futures has tumbled near 70 percent over the past month because the market is less concerned about supply for the rest of the winter given that production is expected to rise from near record levels.
With midday forecasts predicting cooler weather than earlier forecast, financial data provider Refinitiv projected demand in the lower 48 U.S. states would average 120.3 billion cubic feet per day (bcfd) next week, up from its earlier estimate of 119.6 bcfd.
That compares with the projected demand average of 119.7 bcfd this week and 116.0 bcfd during the last week of February. Gas production in the Lower 48 held near 86.7 bcfd for a third day in a row, off a bit from a four-week high of 86.9 bcfd hit on Monday, according to Refinitiv.
U.S. dry natural gas production will rise to an all-time high of 90.16 billion cubic feet per day in 2019 from a record high of 83.26 bcfd in 2018, according to the Energy Information Administration’s Short Term Energy Outlook (STEO).
The latest February output projection for 2019 was down slightly from EIA’s 90.19-bcfd forecast in January. EIA also projected U.S. gas consumption would rise to an all-time high of 82.53 bcfd in 2019 from a record high 81.68 bcfd in 2018.
Trading Ideas:
— Natural Gas trading range for the day is 179.7-190.9.
— Natural Gas gained on forecasts of colder weather and more heating demand over the next two weeks than previously expected.
–U.S. dry natural gas production will rise to an all-time high of 90.16 billion cubic feet per day in 2019 from a record high of 83.26 bcfd in 2018.
–EIA also projected U.S. gas consumption would rise to an all-time high of 82.53 bcfd in 2019 from a record high 81.68 bcfd in 2018.
Courtesy: Kedia Commodities
Source: Commodityonline.com
