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NYMEX Natural gas prices recoup from 6-month low, but poised for a 2nd monthly decline.

U.S. Henry hub natural gas futures slipped to six month low putting the prices on a losing trajectory for a second month on the wake of less colder weather condition at December while natural gas storage remained at yearly highs. However, in the last week NYMEX natural gas futures jumped on a bigger-than-expected storage withdrawal, and forecasts for colder weather and higher heating demand in early January than previously expected and as a record amount of gas continued to flow to liquefied natural gas (LNG) export plants. Besides, January, the coldest month of winter is yet to approach and possible to increase consumption in natural gas.

U.S. Weather outlook for January

In January, weather in U.S. is expected between a colder than average at Northern regions and mild at South. The overall forecast for January has trended colder in the northwestern and north-central U.S. with much below average temperatures now expected. Warmer than average conditions are still forecast in the South, but a more expansive area of much above average temperatures compared to our previous outlook is now expected from central and southern Texas eastward through the Gulf Coast region to southern and central Georgia, southern South Carolina and Florida. An above -average forecast still means it will be cold at times because January is the coldest time of the year for much of the U.S.

Money managed positions NYMEX Natural Gas F&O

Money managers added their long positions and short positions in henry hub Natural Gas futures and options contracts in NYMEX platform the week ended on December 15, the U.S. Commodity Futures Trading Commission (CFTC) reported. The net long positions remained below zero.

U.S. Natural Gas storage change

The Energy Information Administration reported that the natural gas stored in the underground storage utilities in U.S. were declined by 87 billion cubic feet (bcf) in the week ended December 15. The total working natural gas storage at underground facilities are 6577 billion cubic feet. The storage level is 7.2 percent above the level seen at same period a year ago, and 8.5 percent higher than 5 year average.

NYMEX Natural Gas: Prices may appear firmer above the resistance of 2.90. Whereas, a dip below 2.10 region may weaken the prices.

MCX Natural Gas: Range bound moves with mild recovery moves expected to witness in the upcoming monthly period. Weakness is possible below 185 region.

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