Natural Gas gains 1% to hold at five-week high, US gas storage up 55 BCF

Natural Gas futures are witnessing robust gains today, adding to recent upward momentum on steady demand as a break above $3 per mmbtu mark extends for the commodity. The U.S. Energy Information Administration (EIA) reported yesterday that working natural gas in storage across the United States increased by 55 billion cubic feet in the week ending August 29 compared to the previous seven-day period to reach 3,272 billion cubic feet. On an annual level, the figure marked a drop of 73 billion cubic feet. However, stockpiles grew by 173 billion cubic feet above the five-year average of 3,099 billion cubic feet. The total working gas remained within the five-year historical range. Firm cues from US equities and demand push from electricity providers is keeping the commodity supported today as the futures are up 1% at $3.10 per mmbtu, holding around five-week high. The counter is up around 3.60% this week following an 11% spike in last week. On the MCX, the benchmark futures are currently quoting at Rs 274.60 per mmbtu, up 0.81% on the day.

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