Gold Silver Reports – Technically Natural Gas MCX market is under short covering as market has witnessed drop in open interest by 7.92% to settled at 19436 while prices up 1.2 rupees.
Natural Gas MCX is getting support key at 171 and below same could see a test of 168 levels and resistance key is now likely to be seen at 180, a move above could see prices testing 184
Natural Gas MCX settled up 0.68% at 176.4 amid forecasts for more cold December weather than previously expected. On Tuesday, the contract dropped over 5 percent to a nine-month low on forecasts for less cold weather than previously forecast.
Next-day power and gas prices in New England held near their highest levels since last winter on forecasts for a few days of bitter cold in the region. Production in the lower 48 U.S. states averaged an all-time high of 76.2 bcfd over the past 30 days, according to data.
Daily output peaked at the end of November at 76.8 bcfd and has remained near that level since. Even though the amount of gas in storage is a little less than usual for this time of year, traders said that should be more than enough to meet heating demand this winter, especially if production remains near record highs and the latest weather forecasts for the full season are correct.
Read More: MCX Natural Gas Tips Trade With 100-200 Lots
Natural gas futures have closely tracked weather forecasts in recent weeks, as traders try to gauge the impact of shifting outlooks on early-winter heating demand. Prices of the fuel typically rise ahead of the winter as colder weather sparks heating demand.
The heating season from November through March is the peak demand period for U.S. gas consumption. – Neal Bhai Reports
