Naturalgas on MCX settled up 2.33% at 206.70
Naturalgas on MCX settled up 2.33% at 206.70 on short covering as support seen on the speculation that colder temperatures in the northeastern part of the United States is approaching, which quite often has a large influence on the natural gas markets. However, it will take a significant amount of bullish pressure to send this market higher. Chilly conditions will continue across the north-central US the next few days with lows of single digits to 20s. The East Coast will cool mid-week as a frontal boundary moves thorough with highs of upper 40s to 60s. A rather cold weather system will track across the upper Midwest and Northeast Fri-Sat for a surge in heating demand as lows drop into the teens and 20s. The southern US will be mild to warm with highs mainly in the upper 60s to 80s. Overall, demand will be MODERATE through Thursday, then HIGH Fri-Sun. While US natural gas production growth is expected to surge in 2018, after rising more modestly in 2017, the US EIA said in a monthly report Tuesday. The EIA also projected natural gas production would rise to 78.90 bcfd in 2018, up from a forecast of 78.49 bcfd issued in October. Total gas consumption in the U.S. is likely to fall slightly in 2017 to 73.06 bcfd from 75.1 bcfd a year earlier. Total consumption is expected to rebound in 2018 to 76.83 bcfd. However, natural gas usage in U.S. homes is expected to grow in both years, rising slightly to 11.90 bcfd in 2017 and climbing to 12.89 the following year. Technically market is under fresh buying and getting support at 202.8 and below same could see a test of 198.9 level, And resistance is now likely to be seen at 209.1, a move above could see prices testing 211.5.
# Naturalgas trading range for the day is 198.9-211.5.
# Natural gas prices remained supported amid forecasts for more heating demand over the next two weeks.
# Traders reacted to bullish weather forecasts for most parts of the United States over the next two weeks, that should lead to an increase in heating demand.
# US natural gas production growth is expected to surge in 2018, after rising more modestly in 2017, the US EIA said in a monthly report Tuesday