Natural gas yesterday traded with the positive node and settled 0.24% up at 165.8 on some low level buying support after prices dropped early in the week as forecasts for warmer weather in the coming days dashed hopes for increased demand.
Most weather forecasts point to warmer-than-normal temperatures for both the 6-to-10 day outlook and the 11-to-15 outlook over much of the northern half of the country and the eastern seaboard.
Natural gas is a key component of Electricity generation, and demand rises as people heat their homes. Gas prices have been plummeting since June, as a combination of robust production and tepid demand have led to a supply glut.
U.K. summer Natural Gas slipped to its lowest in 10 months amid record storage for the time of year and forecasts for milder weather that may cut demand even as four liquefied gas tankers sail to Britain.
The number of rigs drilling for natural gas in the United States slid by two this week to a 23-month low of 818, the seventh straight weekly decline, data from oil services firm Baker Hughes showed on Friday.
In yesterday's trading session Natural Gas has touched the low of 165 after opening at 166, and finally settled at 165.8. For today's session market is looking to take support at 165.2, a break below could see a test of 164.6 and where as resistance is now likely to be seen at 166.2, a move above could see prices testing 166.6.
Trading Ideas:
Natural Gas trading range is 164.6-166.6.
Natural gas ended with gains on some low level buying support after prices dropped early in the week
Natural gas is a key component of Electricity generation, and demand rises as people heat their homes
Gas prices have been plummeting since June, as combination of robust production and tepid demand have led to supply glut
Courtesy:Kedia Commodities
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