Natural gas futures climbed to Rs 193.40 per mmBtu on December 14 as participants increased their long positions as seen by the open interest. Natural gas price had gained 0.42 percent last week on the MCX.
The number of rigs drilling natural gas in the US rose by 2 to 79 for the week ending December 11, said Baker Hughes in its weekly report.
MCX iCOMDEX Natural Gas Index inched higher 75.48 points or 3.19 percent to 2,444.00.
Kshtij Purohit, Product Manager, Currency & Commodities, CapitalVia Global Research Limited said, “Natural Gas Price plunged extremely hard to lead the week, falling to the $2.45 level before slipping below the $2.40 level. For much of the week, however, the price has recovered to fill the void and now it seems as though the market is trying to take out the 200 weeks EMA. If it does then the above $3/mmBtu level could be targeted.”
On MCX, Natural Gas December futures pull back from the dip of Rs 175 to Rs 194.40, after the announcement of EIA related to deficit inventory of minus 85 billion cubic feet, he said.
In the futures market, natural gas for December delivery touched an intraday high of Rs 197.70 and an intraday low of Rs 194 per mmBtu on MCX. So far in the current series, natural gas has touched a low of Rs 175.90 and a high of Rs 259.80.
Natural gas delivery for December jumped Rs 6, or 3.13 percent, to Rs 194.40 per mmBtu at 14:32 hours IST with a business turnover of 11,563 lots.
Natural gas delivery for January gained Rs 5.50, or 2.85 percent, to Rs 198.40 per mmBtu with a business volume of 1,612 lots.
The value of December and January’s contracts traded so far is Rs 498.21 crore and Rs 23.57 crore, respectively.
MCX Natural Gas will trade with positive bias for the session and is likely to test Rs 199-202 levels, said Motilal Oswal. The broking firm said natural gas has support at 191-188 levels.
At 09:05 (GMT), the natural gas price edged higher by 3.32 percent quoting at $2.67 per mmBtu in New York.
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