MCX Natural Gas Strat Buying Target 219-229

MCX Natural Gas Strat Buying Target 219-229Neal Bhai Reports — MCX Natural Gas Strat Buying Target 219-229 — Natural Gas on MCX settled up 0.6% at 217.7 driven by uncertainty about winter forecasts.

A series of smaller-than-expected injections of natural gas into storage has raised hopes that the overhang of supply is dissipating, helping to push prices to a 22-month high last week. Many market participants have been counting on a combination of winter heating demand and lower drilling activity to lead to higher prices. Natural gas production on the Norwegian Continental Shelf posted steep monthly and annual falls during September on the back of a heavy maintenance schedule last month, preliminary data showed.

Gas stocks typically rise between April and October and then draw down between November and March. But stocks have increased much more slowly than usual this year. Stocks have risen by less than the five-year average every week since the start of May, a total of 23 consecutive weeks, according to data from the U.S. Energy Information Administration.

The result is that the gas market has swung from a huge surplus at the end of the first quarter close to balance by the end of the third quarter and is on track for a deficit in 2017.

Stocks were 1,014 billion cubic feet above prior-year levels in late March but by the end of the first week in October the surplus had shrunk to just 28 billion cubic feet. Gas production has been falling since April as low prices forced many gas companies to scale back drilling programmes. Technically market is under fresh buying as market has witnessed gain in open interest by 5.41% to settled at 5652, now Natural Gas is getting support at 209 and below same could see a test of 207 level, and resistance is now likely to be seen at 220.3, a move above could see prices testing 229. —  Gold Silver Reports 

MCX Natural Gas Strat Buying Target 219-229


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