Natural Gas edges up from one and half week low, MCX futures hold above Rs 300 mark

Natural Gas futures edged up from one and half week low amid a stability in crude oil prices clubbed with modest uptick in risk appetite. The counter had dipped from three-month high though lows around $3.10 per mmbtu capped downside in last session. The counter currently trades up 0.16% at $3.15 per pound. Prices action has been muted this month with the futures sliding more than 4% so far in June. Near term trajectory for prices will likely depend upon US equities movement and weather forecasts. Overall trend is expected to be steady. Last week, the US EIA reported that US Natural gas inventories for the week ended May 29 rose by 95 bcf, sliding under the 5-year weekly average of +101 bcf. This can provide some support to the commodity after recent weakness. MCX Natural Gas futures are up 0.20% at Rs 301.40 per mmbtu. Some selling is emerging on rallies today but downside appears supported around Rs 300 mark.

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