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Natural gas

Natural gas gained for the fifth straight month of gains in August, on weak US output due to hurricane Ida and summer heat lingered throughout the country.

Henry hub Natural gas futures prices extended gains in previous week to its late 2018 highs on expectation of delaying supplies from Gulf of Mexico due to a halt in production on the ground of Hurricane Ida. Higher demand and low gas storage levels in all major gas markets abroad continues to signal a tighter U.S. gas market. Henry hub natural gas front month future contract surged in previous week by 7.83 percent. MCX natural gas prices gained for the second consecutive week and closed at INR 341.7/ MMBtu by gaining more than 6.00 percent.

U.S. Natural gas prices persist its bullish sentiments

Summer heat lingered in United States by the middle of the month across California, the southwest and nation’s midsection

Hurricane Ida disrupted production facilities in Gulf of Mexico and its shut in for all or most of September due to power outages and severe damages at Port Fourchon. This production shutdowns dragged output below 90 Bcf on several days

Anticipating cooler temperature in US’ s Midwest and East during this week.

US gas rigs rose five to 102, in their biggest weekly rise since May.– Baker Huges.

Ida’s Path of Destruction Dogging Natural Gas, Oil Operations in Louisiana, Offshore Producers that work offshore were struggling to return crews to platforms and rigs on Friday. Extensive damage in Louisiana’s Houma and Port Fourchon, major staging areas for the offshore industry, were hindering the return of crews to platforms and rigs. Widespread power outages in the scorching heat also had cut off access to most fueling stations, as well as preventing processing facilities and major refineries from restarting.

U.S. Natural Gas storage increased moderately The U.S. Energy Information Administration (EIA) said utilities added just 20 billion cubic feet (bcf) of gas into storage during the week ended August 27. That was lower when we compared with an increase of 36 bcf in the same week last year and a fiveyear (2016-2020) average increase of 53 bcf. Last week's injection lifted stockpiles to 2.871 trillion cubic feet, or 7.2% below the five-year average of 3.093 tcf for the same week.

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.

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