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NATURAL GAS

According to data from Point Logic Energy, the average total supply of natural gas has been similar compared to the previous report week, averaging at 96.7 Bcf/d (billion cubic feet per day). Dry natural gas production has been similar on a weekly basis to 92.3 Bcf/d from 91.9 Bcf/d, while average net imports from Canada has reported lower at 4.3 Bcf/d, during the last week.

On the other hand, demand for Natural Gas has been lower in the last week amid decrease in residential sector demand to 90.7 Bcf/d during last week compared with the previous week's report of 92.5 Bcf/d, according to data from Point Logic Energy. Decline has been witnessed in the residential sector to 20.4 Bcf/d, compared to 20.7 Bcf/d of the preceding week. Natural gas consumption in Industrial sector has been lower at 22.9 Bcf/d on a weekly basis, while the power usage has been lower at 23.8 Bcf/d during the last week. Furthermore, Pipeline fuel use/losses has been similar at averaging at 6.3 Bcf/d on a weekly basis, while exports to Mexico has been lower at 5.5 Bcf/d during the last week.

Outlook:-

Fundamentally for the week ahead, we are estimating MCX Natural Gas futures to trade sideways in expectancy of steady supplies, steady demand/usage and small rise in inventories observed ona weekly basis. Natural gas inventories has showcased a seasonal rise to 2260 billion cubic feet, higher compared to previous reported inventories of 2240 billion cubic feet. Similarly, the US CPC further expects extreme weather conditions for the next 6-10 days in this spring season which is expected to mixed trend in prices during the week ahead. Overall, we expect sideways trend in MCX Natural Gas Futures in the coming week.

U.S. CPC (Climate Prediction Center) survey for next 6-10 days, showcases that warmer temperatures are estimated to western parts of the United States. This is expected to decrease the usage of Natural Gas for power sectors in the on going spring season. Conversely, cooler temperatures are expected to cover in the central and eastern parts of the United States. Elsewhere, Alaska is expected to be extremely warm that could not support demand for heaters. Since, the weather has been reported to be extreme and spring season is picking up pace, the overall demand for Natural Gas is expected to be mixed. In conclusion, the temperatures in United States are estimated to be 40% to 50% above and below normal temperatures making a net extreme weather cond itions.

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