Technically Natural Gas market is under fresh buying as market has witnessed gain in open interest by 19.1% to settled at 6217 while prices up 20.8 rupees.
Now MCX Natural Gas is getting support at 412.6 and below same could see a test of 396.4 levels, and resistance is now likely to be seen at 438.7, a move above could see prices testing 448.6.
Natural Gas yesterday settled up by 5.1% at 428.8 on prospects of supply constraints ahead of the winter. At the same time, inventories in Europe are at historically low levels for this time of year.
In China, imports are almost the double from last year’s levels and in Brazil, imports are also near record levels as the country faces its worst drought in 91 years, hurting hydropower output.
The U.S. Energy Information Administration (EIA) said utilities added a bigger-than-usual 88 billion cubic feet (bcf) of gas into storage during the week ended Sept. 24.
That was a little over the 87-bcf build analysts forecast in a Reuters poll and compares with an increase of 74 bcf in the same week last year and a five-year (2016-2020) average increase of 72 bcf. Last week’s injection boosted stockpiles to 3.170 trillion cubic feet (tcf), or 6.3% below the five-year average of 3.383 tcf for this time of year.
With gas prices at or near record highs of around $32 per mmBtu in Europe and $30 in Asia versus just about $6 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 396.4-448.6.
–Natural Gas prices rose on prospects of supply constraints ahead of the winter.
–At the same time, inventories in Europe are at historically low levels for this time of year.
–In China, imports are almost the double from last year’s levels and in Brazil, imports are also near record levels.
Courtesy: Kedia Commodities
Source: Comodity Online
