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Natural gas futures slip 3.4% to Rs 177.30 per mmBtu ahead of inventory report

In the futures market, natural gas for January delivery touched an intraday high of Rs 182.10 and a low of Rs 177.10 per mmBtu on MCX.

Mumbai / January 22, 2021 / 02:58 PM IST
Natural Gas

Natural Gas

Natural gas futures slumped to Rs 177.30 per mmBtu on January 22 as participants increased their long positions as seen by the open interest. Natural gas prices declined 1.9 percent on the NYMEX on January 21.

Natural gas extended loss in the afternoon session to trade at the day’s low after a gap-up opening, tracking weak overseas trend as it breached the crucial $2.5/mmBtu-level.

Participants will take further cues from EIA weekly inventory data to be released later in the day to gauge the demand equation.

LKP Securities Limited said, “Natural gas prices traded weak and are near important daily moving averages. Falling channel pattern is observed in daily charts, which can keep prices under pressure. In the short term, price range for natural gas is Rs 170-195.”

LKP Securities LKP Securities

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MCX iCOMDEX Natural Gas Index dropped 34.92 points, or 1.54 percent, to 2,233.71.

In the futures market, natural gas for January delivery touched an intraday high of Rs 182.10 and a low of Rs 177.10 per mmBtu on MCX. In the current series, natural gas has touched a low of Rs 167.40 and a high of Rs 255.90.

Natural gas delivery for January fell Rs 3.40, or 1.88 percent, to Rs 177.30 at 1441 hours, with a business turnover of 9,091 lots. Delivery for February slipped Rs 2.80, or 1.54 percent, to Rs 179.10, with a business volume of 8,987 lots.

The value of January and February contracts traded so far is Rs 927.67 crore and Rs 191.77 crore, respectively.

Natural gas may remain rangebound ahead of the inventory report. If EIA matches or reports a bigger fall in US gas stocks, we may see some gains, Kotak Securities said.

At 0913 GMT, the natural gas price edged lower 2.45 percent quoting at $2.43 per mmBtu in New York.

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Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Sandeep Sinha
first published: Jan 22, 2021 02:58 pm

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