Technically Natural Gas market is under short covering as market has witnessed drop in open interest by 15.02% to settled at 3983 while prices up 8.6 rupees.
Now MCX Natural Gas is getting support at 398.6 and below same could see a test of 382.8 levels, and resistance is now likely to be seen at 423.1, a move above could see prices testing 431.8.
Natural Gas yesterday settled up by 2.12% at 414.3 after the forecast called for cooler weather and higher heating demand than expected earlier in the day.
Warmer-than-normal weather over the past four weeks has already allowed U.S. utilities to stockpile more gas than usual. The European Union is looking at different ways to ensure Ukraine has a steady supply of natural gas this winter and is not exposed to any reduction in Russian output.
European Commission President Ursula von der Leyen said reverse flows could come from Slovakia, which since September 2014 has had a special interconnection point with Ukraine.
Data provider Refinitiv said gas output in the U.S. Lower 48 states rose to an average of 92.2 billion cubic feet per day (bcfd) so far in October from 91.1 bcfd in September.That compares with a monthly record of 95.4 bcfd in November 2019.
Refinitiv projected average U.S. gas demand, including exports, would rise from 84.1 bcfd this week to 85.1 bcfd next week as the weather turns seasonally cooler and more homes and businesses turn on their heaters.
Those forecasts, however, were lower than Refinitiv projected. With gas prices near $29 per mmBtu in Europe and $33 in Asia , versus just over $5 in the United States, traders said buyers around the world will keep purchasing all the LNG the United States could produce.
Trading Ideas:
–Natural Gas trading range for the day is 382.8-431.8.
–Natural Gas gained after the forecast called for cooler weather and higher heating demand than expected earlier in the day.
–Warmer-than-normal weather over the past four weeks has already allowed U.S. utilities to stockpile more gas than usual.
–Data provider Refinitiv said gas output in the U.S. Lower 48 states rose to an average of 92.2 bcfd so far in October from 91.1 bcfd in September.
Courtesy: Kedia Commodities
Source: Comodity Online
