Technically Natural Gas market is under short covering as market has witnessed drop in open interest by 38.19% to settled at 1499 while prices up 10.2 rupees.
Now MCX Natural Gas is getting support at 354.5 and below same could see a test of 342.1 levels, and resistance is now likely to be seen at 374.6, a move above could see prices testing 382.3.
Natural Gas yesterday settled up by 2.86% at 366.9 as soaring global gas prices kept demand for U.S. liquefied natural gas (LNG) exports high and output remained sluggish after Hurricane Ida in late August.
Limiting price gains were a storage build in line with estimates and the five-year average, and forecasts for milder weather that would cap U.S. demand for gas.
The U.S. Energy Information Administration (EIA) said utilities added 76 billion cubic feet (bcf) of gas into storage during the week ended Sept. 17. Last week’s injection boosted stockpiles to 3.082 trillion cubic feet (tcf), or 6.9% below the five-year average of 3.311 tcf for this time of year.
With gas prices near record highs of around $24 per mmBtu in Europe and $27 in Asia , versus just about $5 in the United States, traders noted buyers around the world were purchasing all the super-chilled gas the United States can produce.
Despite reductions at several plants this month, data provider Refinitiv said, the amount of gas flowing to U.S. LNG export plants was only down to an average of 10.4 billion cubic feet per day (bcfd) so far in September, from 10.5 bcfd in August.
Trading Ideas:
–Natural Gas trading range for the day is 342.1-382.3.
–Natural Gas rose as soaring global gas prices kept demand for U.S. LNG exports high and output remained sluggish after Hurricane Ida in late August.
–Soaring gas prices ripple through heavy industry, supply chains.
–The U.S. Energy Information Administration (EIA) said utilities added 76 billion cubic feet (bcf) of gas into storage.
Courtesy: Kedia Commodities
Source: Comodity Online
