Natural gas futures soared to Rs 215.10 per mmBtu on February 2 as participants increased their long positions as seen by the open interest. Natural gas prices rose 11.2 percent yesterday on the NYMEX.
The price surged on increased fuel demand as the Northeastern US has been hit by a powerful winter snowstorm, pummeling a vast swath stretching from Pennsylvania through New England and causing widespread disruption in New York City and other major urban centres in the region.
Kshtij Purohit, Product Manager, Currency & Commodities, CapitalVia Global Research Limited said, “Natural gas gave firm opening and trading higher in the morning session. It closed above 100 days SMA placed at Rs 197 levels. Natural gas price has support at Rs 197 and below it may come down to Rs 193 levels.”
MCX iCOMDEX Natural Gas Index jumped 87.31 points or 3.36 percent to 2,685.19.
In the futures market, natural gas for February delivery touched an intraday high of Rs 216.50 and an intraday low of Rs 205.60 per mmBtu on MCX. So far in the current series, natural gas has touched a low of Rs 169 and a high of Rs 216.80.
Natural gas delivery for February gained Rs 6.80, or 3.26 percent, to Rs 215.10 per mmBtu at 14:26 hours IST with a business turnover of 14,096 lots.
Natural gas delivery for March edged higher Rs 4.60, or 2.22 percent, to Rs 211.70 per mmBtu with a business volume of 2,504 lots.
The value of February and March’s contracts traded so far is Rs 1,842.70 crore and Rs 86.66 crore, respectively.
Natural gas has rallied sharply on expectations of increased demand. However, we do not expect a sustained rise amid robust stocks and reduced demand for exports, said Kotak Securities.
At 08:59 (GMT), the natural gas price was up 4.42 percent quoting at $2.95 per mmBtu in New York.
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