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Natural Gas

NYMEX Natural gas prices gained to 2-months high

Henry hub Natural gas prices gained for the third consecutive week as strong US export demand is keeping the inventories low and uncertainty prevailing over the Russian gas supplies to Europe. While US liquified natural gas terminals are operating near their maximum capacity mainly to increase shipments to Europe as an effort to reduce their dependency on Russia over energy requirement, almost 40 percent of Europe's gas imports from Russia. The U.S. confirmed that it would send additional 15 billion cubic meters of LNG to Europe this year– its roughly 10 %to 12% of current annual US export to other countries. Supply worries raised further in the Euro region after the Russian president Putin signed a decree stating that consuming countries mush pay in roubles through Russian bank by the 1st April, however, the European importers declined to pay in roubles. At the same time Germany came out with an ambitious plan to wean itself off from Russian gas in next 2 years, fresh contract has been signed with Qatar as part of such action. Asian importers of Russian gas were also baffled over the Russian president statement of “Unfriendly” nations must pay roubles for Russian gas. Japan, South Korea and Taiwan were listed in the approved list by Russia. Where Japan is the biggest importer of Russian gas in Asia.

U.S. Natural gas prices is expected remain steady on strong demand

Canada plans to increase oil and gas exports this year by up to 300,000 barrels per day

Lithuania, a European country, fully suspends Russian gas imports, as part of Europe plan to reduce Russian gas imports.

China's biggest state-owned oil and gas company PetroChina aims to increase the proportion of natural gas production to 55% of its total oil and gas output by 2025

The Indian government announced last week a hike in the domestic natural gas prices to $6.10 per MMBtu, more than double the existing prices as energy prices surged globally. The new price will be applicable for six months beginning April 1st . Currently, the price of domestic natural gas stands at $2.9 per MMBtu.

U.S. Natural Gas storage fields post first injection in 2022 in its recent report. The U.S. Energy Information Administration (EIA) reported an injection of 26 Bcf natural gas into storage for the week ended March 25. It marked the first inventory increase of the year, led by a hefty build in the South Central region in US. Injection of 21 Bcf is higher than 7 bcf in the same week last year and a five-year (2017-2021) average decline of 23 bcf.

NYMEX: Bullish bias to continue as long as prices stay above the support of $5. A close below $3.90 is a signal of liquidation pressure.

In MCX, inability to move past the support of Rs 280 there are chances of continuation of upside in the counter

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