Now MCX Natural Gas is getting support at 179.3 and below same could see a test of 175.4 level, And resistance is now likely to be seen at 190.4, a move above could see prices testing 197.6.
Naturalgas on MCX settled down 5.18% at 183.20 tracking weakness from Nymex natural gas which dropped 4.2% to $2.551 per million British thermal units that was the lowest for a front-month contract since Aug. 11, 2016 after the U.S.
Energy Information Administration (EIA) reported Thursday that U.S. natural gas stockpiles decreased by 237 billion cubic feet for the week ending February 1. Market were expecting a storage withdrawal of around 250 billion cubic feet.
The five-year average for the week is a withdrawal of 150 billion cubic feet, and last year’s withdrawal totaled 116 billion cubic feet. Natural gas inventories fell by 173 billion cubic feet in the week ending January 24.
Meanwhile Cold air over the Plains will spread into Texas and across the Midwest today and Friday with a wintery mess of precipitation. Temperatures behind the core of the cold front will drop into the -10s to 20s, but also with teens to 30s into Texas and the South.
It will be mild for one more day over the East with highs of 50s to 80s, although rapidly cooling Fri-Sat as the Midwest front arrives. The West will be unsettled and cool to cold. A mild break will return across the southern and eastern US early next week before another cold front arrives late in the week.
--Natural Gas trading range for the day is 175.4-197.6.
--Natural Gas dropped after forecasts for warmer weather in February and a smaller-than-expected storage decline revived speculative selling.
--EIA said utilities pulled 237 billion cubic feet (bcf) of gas from inventories during the brutally cold week ended Feb. 1.
--Gas production in the Lower 48 states, meanwhile, rose to 86.5 bcfd from a four-month low of 85.0 bcfd on Jan. 31.
Courtesy: Kedia Commodities