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Natural Gas

Natural gas prices advanced to more than two month highs

Henry hub Natural gas future prices boosted higher in previous week nearing to $3.00 level ahead of cool weather ready to enter into central United states along with production drop in the region supported the prices sentiments. Meanwhile , speculation of rising US LNG exports as Asia and Europe to meet its summer demand accelerated the prices sentiments.

Henry hub natural gas futures prices for June delivery gained by 7.36 percent in previous week by marking third consecutive week and finally settled at $2.931 per mmBtu last week. While here in domestic futures platform MCX Natural Gas futures prices also ticked higher by 6.50 percent and finally settled at Rs 218 per mmBtu.

U.S. Natural gas prices likely to extend its recovery move...

* Additional cooling demand from US for the next 10-14 days as warmer than normal weather is largely to cover most the country.

* Demand is expected to take off further on support weather conditions.

* US LNG exports possibly to remained steady as improving demand from consuming countries, however rising cases corona cases in India poses a risk to US exports.

Money managers trimmed Net Longs in Natural Gas F&O in NYMEX

The hedge funds and money managers increased both bullish and bearish positions in NYMEX Natural gas futures and option contracts, and the Net long positions declined.

U.S. Natural Gas storage increased mildly

The US government said the country’s natural gas storage industry posted addition in its latest report. Energy Information Administration (EIA) summarized that the net injections into storage totalled 15 Bcf for the week ending April 23.The 15 Bcf build was much smaller than historical figures, expanding the deficit to the year-ago level and flipping the surplus to the five-year average to a deficit. EIA said South Central inventories rose by 6 Bcf, including a 2 Bcf injection into salt stocks and 4 Bcf into nonsalts. Another surprise in the latest EIA data was the 6 Bcf withdrawal in the East.

NYMEX:

: Support of $2.23 continue to act as a stiff downside level to restrict further downsides. However it needs to clear $3.40 to trigger major rallies in the counter.

In MCX, There are chances of continuation of upside as long as prices stay above Rs172. however, unexpected drop below the same is a short term weak signal.

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