Natural gas futures declined to Rs 212.50 per mmBtu on February 22 as participants increased their short positions as seen by the open interest. Natural gas price had risen 3.11 percent last week on the MCX.
Natural gas extended fall after a gap down start in the afternoon session, tracking negative global cues.
It has been estimated that up to 21 billion cubic feet (Bcf) of natural gas production will be lost due to the cold weather in Texas.
Money managers raised their net long natural gas futures and options positions in the week to February 16, by 8,552 contracts to 356,299, according to US CFTC data.
Sriram Iyer, Senior Research Analyst at Reliance Securities said, “International natural gas futures have started lower this Monday morning and early afternoon in Asia trade. Technically, NYMEX Natural Gas could trade in a range of $2.75-3.10 levels.”
“Technically, MCX Natural gas took resistance near Rs 220 levels and ended on a positive note. However, further downside below Rs 220 could see Rs 212- Rs 208 levels while resistance is at Rs 219-Rs 223 level”, Iyer noted.
MCX iCOMDEX Natural Gas Index was down 52.70 points or 1.85 percent to 2,798.29.
In the futures market, natural gas for March delivery touched an intraday high of Rs 215 and an intraday low of Rs 211.70 per mmBtu on MCX. So far in the current series, natural gas has touched a low of Rs 175 and a high of Rs 222.20.
Natural gas delivery for February slipped Rs 3.90, or 1.80 percent, to Rs 212.50 per mmBtu at 14:26 hours IST with a business turnover of 4,662 lots.
Natural gas delivery for April fell Rs 3.20, or 1.47 percent, to Rs 214.40 per mmBtu with a business volume of 1,363 lots.
The value of February and March’s contracts traded so far is Rs 133.52 crore and Rs 9.91 crore, respectively.
Kshitij Purohit, Product Manager, Currency & Commodities, CapitalVia Global Research Limited said, “Natural gas traded positive during the last trading day, the weather is expected to be warmer than normal throughout most of the East Coast and mid-west for the next 2-weeks but cooler on the West Coast. Natural gas has support at Rs 217 levels below it may come down to Rs 214 levels. While resistance for the energy is at Rs 227, above this natural gas can go towards Rs 231 levels.”
At 08:58 (GMT), the natural gas price dropped 2.47 percent to quote at $2.91 per mmBtu in New York.
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