Technically Natural Gas market is under long liquidation as market has witnessed drop in open interest by 0.49% to settled at 7520 while prices down 0.3 rupees.
Now MCX Natural Gas is getting support at 291.6 and below same could see a test of 285.9 levels, and resistance is now likely to be seen at 306.6, a move above could see prices testing 315.9.
Natural Gas yesterday settled down by 0.1% at 297.4 as the weather was still expected to remain milder than normal through late December.
U.S. natural gas prices in 2021 at the Henry Hub benchmark in Louisiana will likely rise to their highest since 2014 as governments ease lockdowns and demand rises faster than producers can restore output shut during the 2020 coronavirus-linked price drop.
After collapsing to a 25-year low in 2020, analysts forecast gas prices will rise to an average of $3.74 per million British thermal units (mmBtu) in 2021 and $3.92 in 2022.U.S. natural gas storage is expected to end the November-March withdrawal season at 1.635 trillion cubic feet (tcf) on March 31, the lowest since 2019.
That compares with 1,801 tcf at the end of the winter withdrawal season in 2021 and a five-year (2017-2021) average of 1,694 tcf. There was 1,185 tcf in storage at the end of March 2019, a five-year low. The number of rigs drilling for natural gas in the United States rose by 3 to 105, data from oil services firm Baker Hughes showed.
Trading Ideas:
–Natural Gas trading range for the day is 285.9-315.9.
–Natural Gas pared gains and settled flat as the weather was still expected to remain milder than normal through late December.
–U.S. Henry Hub natgas annual price forecasts, 2021 to rise to 7 – year high.
–U.S. natural gas storage is expected to end the November-March withdrawal season at 1.635 tcf on March 31.
Courtesy: Kedia Commodities
Source: Comodity Online
