MCX Natural Gas Trend Today – Friday settled down by 4.6% at 138.9 on forecasts for lower demand next week than previously expected and longer-term projections that businesses will use less of the fuel and exports will drop in coming months due to government lockdowns to stop the coronavirus spread.
That price decline comes after gas prices jumped earlier this week on a sharp decline in output as shale drillers shut oil wells due to the 60% collapse in crude prices so far this year. Those oil wells also produce a lot of gas.
MCX Natural Gas Price is getting support key @132 and below same could see a test of 127 levels, and resistance key @145, a move above could see prices testing 150.
Most U.S. LNG, however, has already been sold forward years in advance to utilities consuming the fuel, so some U.S. cargoes will likely continue to go to Europe and Asia.
Data provider Refinitiv said U.S. LNG exports averaged 7.0 billion cubic feet per day (bcfd) so far in May, down from a four-month low of 8.1 bcfd in April and an all-time high of 8.7 bcfd in February.
Gas output in the U.S. Lower 48 states has averaged 89.8 bcfd so far in May, according to Refinitiv, down from an eight-month low of 92.8 bcfd in April and an all-time monthly high of 95.4 bcfd in November.