Natural gas prices in NYMEX claimed to more than 2 1/2 years high - Geojit Financial
Natural gas prices in NYMEX claimed to more than 2 1/2 years high
Henry hub Natural gas future prices marked a second consecutive weekly gain on hot weather condition in US. Extremely warmer weather heightened the demand for natural gas from power generation sector in meeting air conditioning demand. Additionally, supply shortness and strong export demand also supported prices. Henry hub front month natural gas futures prices settled in previous week with a sharp gain of 5.84 percent after testing the highest levels since late December 2018. Prices tested as high as $3.814 per mmBtu last week. MCX Natural Gas futures also extended its bullish spree by advancing 6.98 percent and lastly ended at Rs 277.5 per mmBtu.
US Natural gas continue to remain steady
* Heatwaves in some part of the US mainly in California and Texas, continue to domestic consumption of natural gas.
* US Export demand remain steady to Europe and Asia. Natural gas inventories in Europe are at the lowest in ten years.
* Plans of expansion of renewable power capacities in US continue to support natural gas market
* Hurricane Elsa has formed in the Atlantic and its is heading for the Gulf of Mexico. Any trajectory westward would disrupt natural gas producing regions near New Orleans.
Asia's LNG demand to fuel energy giants Oil and gas
Australia's big natural gas exporters are poised to cash in on the strong demand across northern Asia that has propelled the prices of the fossil fuel out of their COVID slump. After last year's coronavirus lockdowns sent liquefied natural gas (LNG) prices plunging below USD2 per mmBtu, cargoes for delivery in Asia have climbed back above USD13, the highest for this time of the year since 2013. Natural gas markets have been rallying after a colder and longer northern hemisphere winter increased demand for heating and drained stockpiles, while Asia's accelerating economic recovery and easing of travel restrictions support higher energy consumption.
U.S. Natural Gas storage increased in previous week
The US natural gas storage industry posted addition in its latest report. US natural gas storage fields added by 76Bcf or 3.1 percent from the previous week and just above the five-year average build of 65Bcf. The total working gas storage decreased by 16.6 percent from this time last year, or 5.3 percent below the five-year average, according to the EIA's Weekly Natural Gas Storage Report.
NYMEX:
Buying momentum may continue but, breaking the resistance of $3.85 is required to strengthen the momentum. In MCX, if prices hold the support of Rs 235 expect recovery upticks in near term. A direct drop below the same would be a signal of further liquidation pressure.
To Read Complete Report & Disclaimer Click Here
Please refer disclaimer at www.geojit.com
SEBI Registration number is INH200000345
Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaimer
Tag News
We anticipate immense potential benefits from the upcoming Sovereign Gold Bond Tranche in FY...
More News
A slide to 5230-5180 is also a possibility if the price makes or break below the current sup...