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Natural gas futures trade lower at Rs 186.10 per mmBtu on weak demand near contract expiry dates

In the futures market, natural gas for October delivery touched an intraday high of Rs 187.20 and an intraday low of Rs 182.50 per mmBtu on MCX. Natural gas price may remain under pressure after the sell-off on September 29.

September 30, 2020 / 02:58 PM IST

Natural gas futures eased to Rs 186.10 per mmBtu on September 30 as participants increased their short positions, as seen by the open interest. Natural gas had slipped 8.4 percent the previous day on the NYMEX index.

Natural gas price tumbled on account of the milder weather forecast and position squaring near the contract expiry.

In the futures market, natural gas for October delivery touched an intraday high of Rs 187.20 and an intraday low of Rs 182.50 per mmBtu on the MCX index. So far in the current series, natural gas has touched a low of Rs 181.50 and a high of Rs 221.

Natural gas delivery for October slipped Rs 2.20, or 1.17 percent, to Rs 186.10 per mmBtu at 2:19 pm IST with a business turnover of 8,734 lots.

Natural gas delivery for November slides Rs 1.40, or 0.61 percent at Rs 228.90 per mmBtu with a business volume of 1,445 lots.

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The value of October and November’s contracts traded so far is Rs 934.56 crore and Rs 28.78 crore, respectively.

Natural gas price may remain under pressure after the sell-off on September 29. "However, we recommend waiting for some recovery to create a fresh position. The focus may continue to be on the US weather, trend in energy prices and storm activity in the Atlantic," said Kotak Securities in a note.

At 8:52 am GMT, the price was down 1.68 percent quoting at $2.51 per mmBtu in New York.

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Moneycontrol News
first published: Sep 30, 2020 02:58 pm

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