Gold Silver Reports – MCX Natural Gas for Intraday Trading Range Between 172—179, Above 172 Buy on Dips — Technically MCX Natural Gas market is getting support key 171 and below same could see a test of 168 levels and resistance key now likely to be seen at 179, a move above could see prices testing 183
Natural Gas on MCX settled down 0.74% at 173.80 on fresh selling despite colder than normal weather which is forecast to cover most of the United States over the next 8-14 days.
Colder than normal weather will increase heating demand late in the drawing season, helping to buoy natural gas prices. Market experts warned that futures are likely to remain vulnerable in the near-term as the coldest part of the winter has effectively passed.
Spring usually sees the weakest demand for natural gas in the U.S, as the absence of extreme temperatures curbs demand for heating and air conditioning. The heating season from November through March is the peak demand period for U.S. gas consumption.
Consumption in end-use demand sectors increases. With colder temperatures in many parts of the Lower 48 states, total U.S. consumption of natural gas rose by 5% compared with the previous report week, according to data from the EIA. Natural gas consumed for power generation climbed by 4% week over week.
Industrial sector consumption increased by 2% week over week. In the residential and commercial sectors where natural gas use for space heating is common, consumption increased by 9%. Natural gas exports to Mexico decreased 1%.
Meanwhile, market participants looked ahead to this week’s storage data due on Thursday, which is expected to show a draw in a range between 86 and 96bcf in the week ended March 16. That compares with a decline of 93 bcf in the preceding week, a fall of 150 bcf a year earlier and a five-year average drop of 53 bcf. – Neal Bhai Reports