Gold Silver Reports — Natural Gas MCX Upside Resistance at 190.2 — MCX Natural Gas market is under long liquidation and getting support at 182 and below same could see a test of 179 level, And resistance is now likely to be seen at 192.2, a move above could see prices testing 195.
Naturalgas on MCX settled down -3.03% at 185.40 as markets continue to suffer at the hands of warmer temperatures in the United States, and of course a massive amount of oversupply when it comes to the natural gas markets.
Natural gas prices fell sharply on Monday, hitting the lowest level since November as forecasts continued to call for mostly warmer-than-normal weather in key regions across the U.S. for the rest of the winter. While trading activity was likely to stay light as markets in the U.S. remain closed for President’s Day on Monday.
Natural gas speculators have hoped for rising demand for the energy commodity, but rising productivity has resulted in plummeting prices. A lack of extreme cold weather in the winter of 2016-2017 has also exacerbated the decline in natural gas prices.
In 2013 and 2014, harsh winters set expectations for significantly higher demand for the commodity over the long term, but more moderate weather has caused traders to rethink that assumption. In the last five years, stocks of natural gas have risen 3.7 percent on average.
That has resulted in natural gas inventories of 2.4tcf by Feb. 10, according to the EIA. That is 3.7 percent higher than the five-year average. Natural gas bulls do have good news in the latest EIA study, however. While stocks are historically elevated, they are declining.
Total inventories fell 4.4 percent from the prior week and 11 percent from a year ago for the week ending Feb. 10, leading gas inventories far off their recent peak level reached in Oct. 2016. The decline continues a long-term trend in falling inventories on a year-over-year basis. — Neal Bhai Reports