Technically Natural Gas market is under short covering as market has witnessed drop in open interest by 18.64% to settled at 6532 while prices up 10.3 rupees.
Now MCX Natural Gas is getting support at 287.1 and below same could see a test of 279.2 levels, and resistance is now likely to be seen at 301.8, a move above could see prices testing 308.6.
Natural Gas yesterday settled up by 3.62% at 295 on forecasts for colder weather over the next two weeks than previously expected.
That price gain came despite near record U.S. output, a decline in U.S. liquefied natural gas (LNG) exports this week, a 4% slide in European gas prices and forecasts for less U.S. demand next week than previously expected.
Data provider Refinitiv said output in the U.S. Lower 48 states has averaged 96.53 billion cubic feet per day (bcfd) so far in December, just shy of November’s monthly record of 96.54 bcfd.
Refinitiv projected average U.S. gas demand, including exports, would jump from 109.4 bcfd this week to 118.2 bcfd next week as the weather turns seasonally colder. Those forecasts, however, were lower than Refinitiv’s outlook on Tuesday.
The amount of gas flowing to U.S. LNG export plants has averaged 11.8 bcfd so far in December now that the sixth train at Cheniere Energy Inc’s Sabine Pass plant in Louisiana is producing LNG.
That compares to 11.4 bcfd in November and a monthly record of 11.5 bcfd in April. This month’s record-setting LNG feed gas came despite reductions this week at Sabine Pass and Freeport LNG’s export plant in Texas.
Trading Ideas:
–Natural Gas trading range for the day is 279.2-308.6.
–Natural Gas climbed on forecasts for colder weather over the next two weeks than previously expected.
–That price gain came despite near record U.S. output, a decline in U.S. liquefied natural gas (LNG) exports this week.
–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
