Long Term MCX Natural Gas Target 212—224—254 Buy on Dips
Natural Gas on MCX settled down 1.82% at 194.1 on forecasts for moderating weather and declining heating demand over the next two weeks.
The market has become much less volatile over the past couple of months as the weather moderates with the approach of spring, amid a widely held belief that record and growing production can meet any future increase in demand.
U.S. dry natural gas production will rise to an all-time high of 90.73 billion cubic feet per day (bcfd) in 2019 from a record high of 83.35 bcfd in 2018, according to the Energy Information Administration’s Short Term Energy Outlook (STEO).
The latest March output projection for 2019 was up from EIA’s 90.16-bcfd forecast in February. EIA also projected U.S. gas consumption would rise to an all-time high of 83.57 bcfd in 2019 from a record high 82.06 bcfd in 2018. That 2019 demand projection in the March STEO report was up from EIA’s 82.53-bcfd forecast for the year in February.