MUMBAI (Commodity Online): MCX natural gas prices are trading down by over 3% on Tuesday morning trade on the back of a mild weather forecast in the US. MCX natural gas February contract is trading at Rs 133.30 after opening the day at Rs 137.50, down 3.55% as of 11:36 AM IST. NYMEX natural gas March contract is down at $2.651/MMBtu.
Although prices have staged a strong bounce over the past days, a recent weather forecast has exposed the vulnerability of the commodity. The Commodity Weather Group LLC is predicting normal to above-normal temperatures in the US through till Feb 13, 2012.
And this is bearish for gas prices considering that inventories are already at record highs and the weather prediction only opens the possibility for this supply glut to build up.
Technically, MCX nat gas is trading near the lower downtrend channel and this could possibly act as a resistance, as we are seeing now.
