Natural gas futures slide to Rs 194.50 per mmBtu on January 28 as participants increased their short positions as seen by the open interest. Natural gas price had surged 3.9 percent yesterday on the NYMEX.
Market participants will take further cues from EIA weekly inventory data to be released later in the day.
Kshtij Purohit, Product Manager Currency & Commodities, CapitalVia Global Research Limited said, “Natural gas gave gap up opening and trading higher in the morning session, it sustains above 100 days SMA which is placed at Rs 197 level then it may come towards Rs 202 levels. The weather is expected to be cooler than normal throughout most of the United States’ west coast, and warmer than normal across most of the mid-west and east coast for the next two weeks.”
MCX iCOMDEX Natural Gas Index dropped 64.85 points, or 2.60 percent to 2,427.02.
In the futures market, natural gas for February delivery touched an intraday high of Rs 198.20 and an intraday low of Rs 192.70 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 fell Rs 5.30, or 2.65 percent, to Rs 194.50 per mmBtu at 14:31 hours IST with a business turnover of 9,744 lots.
Natural gas delivery for March slipped Rs 4.10, or 2.04 percent, to Rs 197.10 per mmBtu with a business volume of 2,047 lots.
The value of February and March’s contracts traded so far is Rs 1,447.57 crore and Rs 45.81 crore, respectively.
Natural gas may remain under pressure on expectations of a small withdrawal from US gas stocks. Apart from inventory, the focus will be on US weather outlook and trend in energy prices in general, said Kotak Securities.
At 09:04 (GMT), the natural gas price declined 2 percent quoting at $2.64 per mmBtu in New York.
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