Technically Natural Gas market is under fresh selling as market has witnessed gain in open interest by 2.94% to settled at 6724 while prices down 1.2 rupees.
Now MCX Natural Gas is getting support at 289.6 and below same could see a test of 285.3 levels, and resistance is now likely to be seen at 300.8, a move above could see prices testing 307.7.
Natural Gas yesterday settled down by 0.41% at 293.8 with production near record highs, a midday forecast for milder weather than expected over the next two weeks, and on expectations for a smaller-than-usual weekly storage withdrawal also due to weather.
Gas futures in Europe and Asia climbed to record highs, keeping demand for U.S. liquefied natural gas (LNG) exports strong.Data provider Refinitiv said output in the U.S. Lower 48 states has averaged 96.56 billion cubic feet per day (bcfd) so far in December, just over 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 118.8 bcfd next week as the weather turns seasonally colder. The forecast for next week was higher than Refinitiv’s outlook on Wednesday.
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.
Trading Ideas:
–Natural Gas trading range for the day is 285.3-307.7.
–Natural Gas slipped with production near record highs, a midday forecast for milder weather than expected over the next two weeks.
–Gas futures in Europe and Asia climbed to record highs, keeping demand for U.S. liquefied natural gas (LNG) exports strong.
–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