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NYMEX natural gas prices remained steady above $5/MMBtu in previous week on combination of flat production, strong export demand and cooler weather forecast in United States

Henry hub Natural gas futures prices made volatile moves in previous week and finally settled on a flat note. Although forthcoming cooling weather patterns in some parts of the US along with record global gas prices preserved the broad bullish momentum . Meanwhile, slow return of production after the Hurricane Ida hit Louisiana in late August continue to support the prices.

Henry hub natural gas October month future contract made wild fluctuation and lastly closed with marginal gains by 0.69% . Whereas MCX natural gas prices slipped lower in previous week and closed at INR 377.1/ MMBtu by shedding 1.39 percent.

U.S. Natural gas prices likely to prolong broad bullish move

• Gas prices near record highs of around $24 per mmBtu in Europe and $27 in Asia, versus just about $5 in the US, which brings much demand to US exports.

• Natural gas stockpiles were about 7% below normal for this time of year in the US versus over 20% below normal in some European countries.

• Speculation of US supply crunch, any shortages would possibly increase the impact on New England region, where limited pipeline facilities makes it difficult to bring gas from Appalachia.

• Increased demand from California gas powered plant.

NYMEX: Bullish bias to continue as long as prices stay above the support of $3.80. A close below the same is a sign of short term weakness.

In MCX, price continue with bullish outlook as long as the support of 320 remain undisturbed. A direct drop below 288 is a sign of reversal.

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