Natural Gas bounces from two and half month low, MCX futures near Rs 310 mark

Natural Gas futures edged up today, recovering after recent set of losses that have pulled the counter around two-and-half month low. The counter fell amid tepid demand amid warmer temperature in the US and tanked around 6.70% last week. Overall storage conditions remain steady. Working natural gas in storage across the US decreased by 38 billion cubic feet (BCF) in the week ending December 26 compared to the previous seven-day period to reach 3,375 billion cubic feet, the Energy Information Administration (EIA) said in its latest update. On an annual level, the storage saw a drop of 55 billion cubic feet. However, the stockpiles are up by 58 billion cubic feet above the five-year average of 3,317 billion cubic feet and the total working gas was within the five-year historical range. The counter is now witnessing some support though as record high US equities is capping downside. The Natural Gas futures currently trade at $3.45 per mmbtu, up 3% on the day. MCX Natural Gas futures are trading at Rs 309.90 per mmbtu, up 1.20% on the day after hitting a high of around Rs 313 per mmbtu.

Powered by Commodity Insights