Technically Natural Gas market is under fresh buying as market has witnessed gain in open interest by 14.09% to settled at 6285 while prices up 1.1 rupees.
Now MCX Natural Gas is getting support at 202.2 and below same could see a test of 201.1 levels and resistance is now likely to be seen at 204, a move above could see prices testing 204.7.
Natural Gas traded in range following the release of a government report showing a weekly storage build that was in line with estimates. Warmer than normal weather is expected to cover most of the United States for the next 8-14 days.
The U.S. Energy Information Administration (EIA) said utilities likely added 46 billion cubic feet (bcf) of gas to storage during the week ended Aug. 3, which was the fifth week in a row that injections were smaller than normal.
The increase for the week ended Aug. 3 boosted stockpiles to 2.354 trillion cubic feet (tcf), leaving inventories 19.5 percent below the five-year average of 2.926 tcf for this time of year and the lowest for the week since 2003.
Despite recent price gains, overall futures volatility has remained relatively low since February as the market cannot decide whether to fall because production is at record levels or rise because the amount of gas in storage is 20 percent below the five-year (2013-2017) average.
Temperatures across much of the country, however, have held steady at above-normal levels since the start of June and are forecast to remain higher than normal through at least late August. Production in the Lower 48 U.S. states averaged a record high 81.0 billion cubic feet per day (bcfd) over the past 30 days. On a daily basis, output rose to an all-time high of 81.9 bcfd on Monday, according to data.
--Natural Gas trading range for the day is 201.1-204.7.
--Natural gas traded in range following the release of a government report showing a weekly storage build that was in line with estimates.
--Warmer than normal weather is expected to cover most of the United States for the next 8-14 days.
--The amount of natural gas in US storage facilities increased 46 Bcf to 2.354 Tcf in the week that ended August 3, the US Energy Information Administration reported.
Courtesy: Kedia Commodities