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Natural Gas

Nymex Natural gas prices steadied

Henry hub Natural gas front future contract were being stuck within a wide range, and the prices rebounded from December lows last week by notching up by almost 5.00 percent. US natural gas prices lifted on prospects of winter demand. Meanwhile European benchmark natural gas prices surged last week as gas supplies from Russia through Ukraine and Poland continue to short while another cold snap is nearing to Europe. Gas supplies to Europe via Ukraine slipped further earlier in previous week and the daily volume marked the lowest level since January 2020. In the meantime, Ukraine repeatedly blaming Russia of holding back the supplies to Europe during winter months as part of pressuring for the approval of the controversial Gazprom-led gas pipeline project Nord Stream 2. Nymex natural gas February month future contract exhibited volatile move in previous week as well and finally closed at 3.916 per mmBtu with solid gains. Whereas MCX natural gas prices edged up as well in previous week and closed at INR 292/ MMBtu by gaining more than 5.00 percent. U.S. Natural gas prices possibly to trade steady

• The Yamal-Europe pipeline, which usually sends Russian gas west into Europe, was flowing east from Germany to Poland on last Friday for an 18th successive day.

• The world’s two largest economies—the US and Mainland China—are poised to be the world’s top export and import markets for liquefied natural gas (LNG) in 2022, says a new report by IHS Markit, a world leader in critical information, analytics and solutions.

• US energy firms kicked off the new year by continuing to add oil and natural gas rigs this week after increasing the rig count in 2021 after two years of declines. The oil and gas rig count, an early indicator of future output, rose two to 588 in the week to January 7, its highest since April 2020, energy services firm Baker Hughes Co said US oil rigs rose one to 481 last week, their highest since April 2020, while gas rigs rose one to 107, their highest since March 2020.

U.S. Natural Gas storage data reported

The U.S. Energy Information Administration (EIA) released inventory data that US natural gas storage draw measuring less than one-third the average, much weaker than the market expected, . Working gas inventories decreased to 3.195 Trillion cubic feet. US storage volumes now stand 154 bcf, or 4.6 percent, less than the year-ago level of

NYMEX: Bullish bias to continue as long as prices stay above the support of $3.4. A close below the same is a sign of short term weakness.

In MCX, inability to move past the support of Rs 262 there are chances of continuation of upside in the counter. Anyhow major resistance is placed at Rs 348.

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