Natural Gas on MCX settled up 0.92% at 208.60 gained despite increase in natural gas inventories. Prices remain buoyed as the trajectory of stockpile increases are less than average, pushing current levels below the 5-year average range. The weather is expected to be warmer than normal over the next 2-week according to the National Oceanic Atmospheric Administration.
Technically MCX Natural Support key @ 204 and below same could see a test of 202 level, And resistance is now likely to be seen key @ 210, a move above could see prices testing 212.
Expectations where for an increase of 48 Bcf. Stocks were 684 Bcf less than last year at this time and 599 Bcf below the five-year average of 3,034 Bcf. At 2,435 Bcf, total working gas is below the five-year historical range.
Overall demand will be MODERATE into Saturday, then increasing to HIGH this weekend through next week. The EIA reports that working gas in storage was 2,435 Bcf as of Friday, August 17, 2018. This represents a net increase of 48 Bcf from the previous week.
Comfortable conditions will linger across the Midwest, Mid-Atlantic, and Northeast the next couple days with highs only in the 70s to mid-80s for light demand. The West, South, and Southeast will be mostly hot with highs of mid-80s to 100s. This weekend, hot high pressure will build over the eastern half of the US with upper-80s to 100s gaining ground for strong national demand, while much of the West cools from recent heat.
