NATURAL GAS MCX SELL BETWEEN 197—198 TARGET 192 — 190 SL PAID. Natural gas futures jumped to settle at Rs 191.40 per mmBtu on December 11 as participants trimmed their position as seen by the open interest. Natural gas price had risen 0.42 percent during the week.
Natural gas demand for residential sector jumped to 113.4 billion cubic feet per day against 103.2 Bcf/d, according to PointLogic Energy.
The US Energy Information Administration (EIA) reported that US natural gas inventories dropped by 91 billion cubic feet (bcf) for the week ended December 4.
MCX iCOMDEX Natural Gas Index was up 11.14 points, or 0.47 percent to 2,368.52.
Sunand Subramaniam, Senior Research Associate, Choice Broking said, “Fundamentally for the weeks ahead, we are estimating MCX Natural Gas futures to trade mixed to bearish in expectancy of steady supplies and demand/usage and fall in inventories observed on a weekly basis.”
He also said that the US CPC further expects warmer weather conditions for the next 6-10 days. This is expected to pressure prices in the week ahead, Subramanium noted.
“Overall, we expect mixed to bearish trend in MCX Natural Gas futures in the coming week,” Subramanium added.
In the futures market, natural gas for December delivery touched an intraday high of Rs 194.4 and an intraday low of Rs 186.40 per mmBtu on MCX. So far in the current series, natural gas has touched a low of Rs 175.90 and a high of Rs 259.80.
Natural gas delivery for December gained Rs 0.90, or 0.47 percent to settle at Rs 191.40 per mmBtu with a business turnover of 7,998 lots.
Natural gas delivery for January soared Rs 0.50, or 0.26 percent, to close at Rs 192.90 per mmBtu with a business volume of 1,553 lots.
The value of December and January’s contracts traded on December 11 was Rs 4,593.05 crore and Rs 156.81 crore, respectively.
Natural gas price settled with a gain of 1.68 percent quoting at $2.59 per mmBtu in New York.