Technically Natural Gas market is under fresh buying as market has witnessed gain in open interest by 35.93% to settled at 8846 while prices up 36.3 rupees.
Now MCX Natural Gas is getting support at 395.9 and below same could see a test of 374.1 levels, and resistance is now likely to be seen at 430.1, a move above could see prices testing 442.5.
Natural Gas yesterday settled up by 9.52% at 417.7 as record global gas prices kept demand for U.S. liquefied natural gas (LNG) exports strong.U.S. prices increased despite forecasts for milder weather and lower demand next week than previously expected.
U.S. utilities injected more gas than usual into stockpiles over the past two weeks and were expected to do so again in the latest inventory report, cutting the deficit to the five-year (2016-2020) average from about 6.9% to about 6.5%.
Gas speculators last week cut their net long positions on the New York Mercantile and Intercontinental Exchanges for a second week in row to their lowest since May in anticipation U.S. prices could drop later this week if U.S. utilities keep adding more gas to storage than usual, according to data from the Commodity Futures Trading Commission (CFTC).
Data provider Refinitiv said gas output in the U.S. Lower 48 states fell to an average of 90.8 billion cubic feet per day (bcfd) so far in September from 92.0 bcfd in August, due mostly to Hurricane Ida-related losses along the Gulf Coast.
With gas prices at or near record highs of around $26 per mmBtu in Europe and $28 in Asia versus just over $5 in the United States, traders said buyers around the world would keep purchasing all the LNG the United States could produce.
Trading Ideas:
–Natural Gas trading range for the day is 374.1-442.5.
–Natural Gas soared as record global gas prices kept demand for U.S. liquefied natural gas (LNG) exports strong.
–U.S. prices increased despite forecasts for milder weather and lower demand next week than previously expected.
–Gas speculators last week cut their net long positions for a second week in row to their lowest since May.
Courtesy: Kedia Commodities
Source: Comodity Online
