Natural Gas at six-week low following nearly 8% plunge on Monday

Natural Gas futures slumped in last session as markets eyed weak undertone in crude oil and weighed on the near-term demand-supply scenario. The US Natural Gas futures lost around 7.60% on Monday and fell further today to test six-week low. The counter currently trades at $3.40 per mmbtu, down 1.50% on the day. Latest Energy Information Administration or EIA report has added to bearish undertones, showing a 96 bcf injection in US gas inventories. This was well above five-year average of 79 bcf. The US gas inventories are now 6.6% above the five-year seasonal average. Market is also tracking easing geopolitical tensions, including the Israel-Iran ceasefire which will reduce near-term LNG supply disruption risks. On the MCX, Natural Gas futures are quoting at Rs 292 per mmbtu, down 1% on the day.

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