Naturalgas on MCX settled up 4.02%
Naturalgas on MCX settled up 4.02% at 202 on short covering as 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. Natural gas prices typically rise ahead of the winter as colder weather sparks indoor-heating demand. The heating season from November through March is the peak demand period for US gas consumption. Meanwhile weather systems with rain and snow will impact West and north-central US with chilly conditions and lows mostly of teens to 30s. The East Coast will be warm Monday with highs of upper 60s to 80s, but will drop into the upper 40s to lower 60s as a cool front sweeps through mid-week. A rather cold weather system will track across southern Canada and across the upper Midwest and Northeast Fri-Sat for a surge in heating demand. The southern US will be mild to warm with highs mainly in the 70s and 80s. Overall, demand will be MODERATE through Thursday, then HIGH Fri-Sun. Meanwhile, market participants looked ahead to this week’s storage data due on Thursday, which is expected to show a build in a range between 11 and 21bcf in the week ended Nov 3. Total natural gas in storage currently stands at 3.775tcf, according to the US EIA. That figure is 180 bcf, or around 4.5%, lower than levels at this time a year ago and 41 bcf, or roughly 1.1%, below the five-year average for this time of year. Technically market is under short covering and getting support at 197.5 and below same could see a test of 192.9 level, And resistance is now likely to be seen at 204.7, a move above could see prices testing 207.3.
# Naturalgas trading range for the day is 192.9-207.3.
# Natural gas rallied 4% as traders reacted to bullish weather forecasts over the next two weeks, that should lead to an increase in heating demand.
# Natural gas prices typically rise ahead of the winter as colder weather sparks indoor-heating demand.
# Total natural gas in storage currently stands at 3.775 trillion cubic feet (tcf), according to the U.S. Energy Information Administration