Limited Period Offer:Be a PRO for 1 month @Rs49/-Multiple payment options available. Know More

Natural gas futures up 1.34% to Rs 196.30 per mmBtu on positive overseas cues

In the futures market, natural gas for February delivery touched an intraday high of Rs 198.30 and an intraday low of Rs 195 per mmBtu on MCX.

Mumbai / January 29, 2021 / 03:23 PM IST
Natural Gas

Natural Gas

Natural gas futures rose to Rs 196.30 per mmBtu on January 29 as participants increased their long positions as seen by the open interest. Natural gas price had declined 1.4 percent yesterday on the NYMEX on lesser drawdown of stock.

Natural gas traded in the green after a gap up open in the afternoon session tracking firm overseas cues.

The US Energy Information Administration (EIA) reported that US natural gas inventories decreased by 128 Bcf for the week ended January 22 against market expectation of 136 Bcf decline.

Natural gas prices were supported by a forecast of cold weather in the early parts of February which may boost heating demand.

Kshtij Purohit, Product Manager, Currency and Commodities, CapitalVia Global Research Limited, said, “Natural gas gave firm opening and was 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 support for the natural gas is placed at Rs 193 levels."

Close

MCX iCOMDEX Natural Gas Index jumped 32.43 points or 1.34 percent to 2,448.22.

In the futures market, natural gas for February delivery touched an intraday high of Rs 198.30 and an intraday low of Rs 195 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 2.60, or 1.34 percent, to Rs 196.30 per mmBtu at 14:45 hours IST with a business turnover of 11,014 lots.

Natural gas delivery for March soared Rs 1.40, or 0.71 percent, to Rs 197.30 per mmBtu with a business volume of 1,893 lots.

The value of February and March’s contracts traded so far is Rs 1,224.61 crore and Rs 38.62 crore, respectively.

Natural gas has rebounded sharply from recent lows and while weather outlook has improved demand prospect, we do not expect a sustained rise owing to robust gas stocks and stable LNG demand, said Kotak Securities.

At 09:18 (GMT), the natural gas price surged 0.49 percent, quoting at $2.67 per mmBtu in New York.

For all commodities-related news, click here

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 29, 2021 03:23 pm

stay updated

Get Daily News on your Browser
Sections