Natural Gas Trading Tips – Buy Between 124—122 for Target 129—132 – 138 Stop Paid.
MCX Natural Gas yesterday settled down by 3.51% at 123.7 on forecasts for lower demand over the next two weeks than previously expected despite slowing production.
Refinitiv said production in the Lower 48 U.S. states fell to an average of 87.5 billion cubic feet per day in June from a 16-month low of 88.2 bcfd in May and an all-time monthly high of 95.4 bcfd in November.
With warmer weather coming, Refinitiv forecast U.S. demand, including exports, would rise from 77.8 bcfd this week to 84.9 bcfd next week.That, however, was lower than Refinitiv’s forecasts on Friday of 79.1 bcfd this week and 85.4 bcfd next week.
Refinitiv said pipeline exports to Canada averaged 2.3 bcfd in June, up from a seven-month low of 2.2 bcfd in May but still well below the all-time monthly high of 3.5 bcfd in December. Pipeline exports to Mexico averaged 5.3 bcfd this month, up from 4.8 bcfd in May but shy of the record 5.6 bcfd in March.
Global gas inventory has swollen as demand for liquefied natural gas (LNG) is slow to recover and fears of a second wave of the coronavirus outbreak are adding to caution as economies restart. Dozens of LNG tankers are idling as gas storage tanks become full in countries such as Japan, South Korea and in Europe.