Natural gas futures drift lower to Rs 243.20 per mmBtu ahead of expiry
In the futures market, natural gas for November delivery touched an intraday high of Rs 245 and a low of Rs 242.40 per mmBtu on the MCX
October 28, 2020 / 03:06 PM IST
Natural gas futures traded lower at Rs 243.20 per mmBtu on October 28 as participants increased their short positions ahead of expiration of contracts later today.
The commodity had gained 1.8 percent on October 27 on the NYMEX. It had surged to the highest level since January 2019, supported by supply disruption in the Gulf of Mexico, higher US LNG exports and increased heating demand amid cold weather in some parts of the US.
According to the US Bureau of Safety and Environmental Enforcement approximately 55.35 percent of Gulf of Mexico gas production facility was shut as of October 27 due to storm activity.
In the futures market, natural gas for November delivery touched an intraday high of Rs 245 and a low of Rs 242.4 per mmBtu on the Multi-Commodity Exchange (MCX). So far in the current series, natural gas has touched a low of Rs 222 and a high of Rs 248.90.
Natural gas delivery for October fell Rs 2.30, or 0.94 percent, to Rs 243.20 per mmBtu at 14:26 hours IST on a business turnover of 11,707 lots. The same for December slides Rs 2.2, or 0.86 percent, to Rs 252.30 per mmBtu on a business volume of 1,150 lots.
The value of November and December’s contracts traded so far is Rs 1,092.12 crore and Rs 25.81 crore, respectively.
"We may see some choppy trade amid positioning near contract expiration and weekly inventory report as market players assess demand supply impact of storm activity. Hence one needs to wait for corrective dips to create fresh long position," said Kotak Securities.
At 08:59 (GMT), the natural gas price was down 0.69 percent at $3.28 per mmBtu in New York.For all commodities related news, click here