Gold Silver Reports – Natural gas on MCX settled up 0.64% at 140.80 dropped from the day’s high as weather forecasts limited expectations for gas-fired heating or cooling demand.
With mild spring temperatures prevailing over much of the country. Natural gas is a key fuel source in home heating and power generation, and demand picks up when temperatures reach extremes. But the mild start to spring has crimped demand for both, with little need for heating or air conditioning.
Updated forecasts show U.S. temperatures remaining normal for the most part into late May, with no apparent ramp-up to summer-like heat on the horizon. A below-normal cool patch is expected to hover over the Midwest in the middle of the month. Also data released Friday by the U.S.
Commodity Futures Trading Commission shows speculators growing increasingly bearish on the market as it pulls back from a bull run that lasted into late April. Recent production declines have helped reduce the huge oversupply of stored natural gas supplies, but after a tepid winter that limited heating demand, stockpiles remain 47% higher than average for this time of year.
Meanwhile total U.S. natural gas storage stood at 2.625tcf as of last week, according to the U.S. EIA, 32.8% higher than levels at this time a year ago and 31.9% above the five-year average for this time of year. Despite recent gains, prices are still down nearly 6% so far this year as weak winter heating demand, near-record production and record-high storage levels dragged down prices. Technically market is getting support at 139.2 and below same could see a test of 135 level, and resistance is now likely to be seen at 142.3, a move above could see prices testing 145. – Neal Bhai Reports
