Natural Gas on MCX settled down 4.32% at 199.30 dropped sharply on profit booking falling to the lowest levels of the session after data showed that domestic supplies in storage fell less than forecast last week.
Yesterday the US EIA reported that U.S. natural gas stocks decreased by 183 billion cubic feet for the week ending January 12. While market expected a storage withdrawal of around 201 billion cubic feet.
The five-year average for the week is a withdrawal of 203 billion cubic feet, and last year’s storage withdrawal for the week totaled 243 billion cubic feet. Natural gas inventories fell by a record 359 billion cubic feet in the week ending December 29.
Meanwhile temperatures are expected to moderate over most of the country this week, although it will remain cold over the eastern half of the United States. Even in those areas, temperatures are expected to rise beginning this weekend and into next week.
Overall demand for the week is forecast to be in the “high” range, but declining to the “moderate” range beginning next week. Now total U.S. stockpiles fell week over week to 12.5% below last year’s level and are now also 12.3% below the five-year average.
The EIA reported that U.S. working stocks of natural gas totaled about 2.584 trillion cubic feet, around 362 billion cubic feet below the five-year average of 2.946 trillion cubic feet and 368bcf below last year’s total for the same period. Working gas in storage totaled 2.952 trillion cubic feet for the same period a year ago. – Neal Bhai Reports