MCX Natural gas futures are trading in a thin manner today as the global prices edged up amid a mixed undertone in the Asian equities and strength in the US dollar. The commodity has been in a downward spiral in last few days and had tumbled to its two week low of $3.828 per mmbtu last week before bargain buying supported the sentiments. The counter quotes at $3.890, up 3.5 cents per barrel or nearly 1% on the day. Natural gas has been falling down after hitting 10-month highs above $4 per mmbtu earlier in the month but failed to hold onto the watershed mark. Prices constantly slipped thereafter but it seems a rather positive US GDP data and expectations of colder weather in near term are supporting the commodity now. Gas prices were up even as above-average temperatures in much of the US have tempered consumption. During the week ended October 24, total US gas demand fell 2.9% from the previous week, led by a drop of 4.8% in residential and commercial use, with temperatures averaging about 1 degree Fahrenheit above normal, according to latest update from the Energy Information Administration (EIA). EIA also reported that working natural gas in underground storage increased to 3.843 trillion cubic feet as of October 19, an implied net injection of 67 billion cubic feet from the previous week, 4.1% over year-ago levels and 7% over the five-year average for that date.The commodity has been witnessing some buying in Asian trades and the local futures might also edge up after nearing Rs 200 per mmbtu levels. The counter trades at Rs 203, down Rs 0.10 per mmbtu on the day. The open interest is up by a mild 2.2% on the day and some fresh buying could be seen in intraday moves. Prices have tested lows very much near to Rs 200 per mmtbu last week but the counter could not slip under the watershed mark.
Powered by Commodity Insights