Technically Natural Gas market is under short covering as market has witnessed drop in open interest by 10.05% to settled at 15694 while prices up 0.9 rupees.
Now MCX Natural Gas is getting support at 181.8 and below same could see a test of 179 levels, and resistance is now likely to be seen at 186.6, a move above could see prices testing 188.6.
Natural Gas prices rebounded in yesterday's session settled at 184.70 up by +0.49% following a larger than expected draw in natural gas inventories according to a report from the Department of Energy.
The weather is expected to become colder than normal over the next 6-10 and 8-14 days in the western portion of the United States but remain mild in the eastern section of the US. With only 9-days left in Hurricane seasons, there are no disturbances that are expected to become tropical cyclones over the next 48-hours according to NOAA.
The EIA reported on Thursday that natural gas stockpiles in storage was 3,638 Bcf as of Friday, November 15, 2019.This represents a net decrease of 94 Bcf from the previous week.Expectations were for natural gas inventories to decline by 49 Bcf according to survey provider Estimize. Stocks were 506 Bcf higher than last year at this time and 60 Bcf below the five-year average of 3,698 Bcf.
At 3,638 Bcf, total working gas is within the five-year historical range.The trajectory of the decline pushes the current levels of inventories back below the 5-year average for this time of year.The decline was based on very cold weather, but expectations are for the weather to remain mild, which should mitigate future draws in stockpiles.
--Natural Gas trading range for the day is 179-188.6.
--Natural Gas prices rebounded following a larger than expected draw in natural gas inventories according to a report from the Department of Energy.
--The market was not yet focused on an outlook calling for more cold during the first week of December.
--EIA said utilities pulled 94 billion cubic feet (bcf) of gas from storage during the week ended Nov. 15, their first withdrawal of the November-March heating season.
Courtesy: Kedia Commodities