Now MCX Natural Gas is getting support at 187.5 and below same could see a test of 185.8 levels, and resistance is now likely to be seen at 190.9, a move above could see prices testing 192.6.
Natural Gas yesterday settled up by 1.34% at 189.1 on forecasts for cooler weather and higher heating demand in mid- to late-April, the first time in seven weeks prices rose three straight days.
Traders noted that while temperatures may be lower, they were expected to remain at near- to above-normal levels during that time and liquefied natural gas (LNG) exports were expected to decline this month during routine plant and pipeline maintenance.
Traders also noted that mild weather this week will likely cause utilities to boost injections into storage by so much that the total amount of gas in inventory will rise above the five-year (2016-2020) average for the first time since the February freeze.
Data provider Refinitiv said output in the Lower 48 U.S. states has averaged 91.9 billion cubic feet per day (bcfd) so far in April, up from 91.6 bcfd in March but still well below the record monthly high of 95.4 bcfd in November 2019.
Refinitiv projected average gas demand, including exports, would hold near 89.3 bcfd this week and next before rising to 91.4 bcfd in two weeks as the weather cools.
The demand forecast for next week was higher than Refinitiv projected on Thursday. The amount of gas flowing to U.S. LNG export plants, meanwhile, has averaged 11.1 bcfd so far in April, which would top March's monthly record of 10.8 bcfd.
--Natural Gas trading range for the day is 185.8-192.6.
--Natural Gas edged up on forecasts for cooler weather and higher heating demand in mid- to late-April, the first time in seven weeks prices rose three straight days.
--Data provider Refinitiv said output in the Lower 48 U.S. states has averaged 91.9 billion cubic feet per day (bcfd) so far in April
--Refinitiv estimated 174 heating degree days (HDDs) over the next two weeks in the lower 48 U.S. states.
Courtesy: Kedia Commodities