Gold Silver Reports (GSR) – Natural Gas on MCX settled up 2.03% at 180.7 following the release of a storage report that was mostly in line with expectations, but warmer-than-normal weather, low heating demand and near-record production kept a lid on prices.
MCX Natural Gas technically under buying zone as market has witnessed gain in open interest by 61.3% to settled at 5768 while prices up 3.6 rupees. Big Target — 202—212 —224
The U.S. Energy Information Administration (EIA) said utilities added 92 billion cubic feet (bcf) of gas to inventories during the week ended April 19. That was mostly in line with 91-bcf build analysts estimated in a Reuters poll and compared with a decline of 20 bcf during the same week a year ago and a five-year average injection of 47 bcf for the period.
The increase last week boosted stockpiles to 1.339 trillion cubic feet (tcf). That would be about 4 percent above the same week a year ago and about 22 percent below the five-year average. The amount of gas in storage has remained below the five-year average since September 2017.
That took the contract deep into technically oversold territory with a relative strength index (RSI) of just 15.36, the lowest since February 2017, before prices recovered on Monday. Futures with an RSI below 30 are considered oversold. – Neal Bhai Reports
