Natural gas futures slightly weakened on Friday and trade in a narrow range tracking subdued global cues. After testing the high of Rs 219.80 in the last session, the gas price turned sideways.
On the Multi-Commodity Exchange (MCX), Natural gas delivery for May fell Rs 0.40, or 0.18 percent, to Rs 217.90 per mmBtu at 14:50 hours IST with a business turnover of 21,850 lots.
Natural gas delivery for June slipped Rs 0.30, or 0.13 percent, to Rs 222.80 per mmBtu with a business volume of 4,933 lots.
The value of May and June’s contracts traded so far is Rs 476.65 crore and Rs 37.88 crore, respectively.
MCX iCOMDEX Natural Gas Index was modestly up 2.46 points or 0.09 percent to 2,739.16.
Sriram Iyer, Senior Research Analyst at Reliance Securities said, “International natural gas futures have started flat this Friday morning and in the early afternoon in Asian trade. Technically, NYMEX Natural Gas could trade in a range of $2.900 and $3.100 levels in coming sessions.”
On the MCX Natural Gas May could see a sideways momentum in the coming session where Rs 221-223 levels will hold resistance and support is at Rs 217-215 levels”, Iyer added.
The US Energy Information Administration (EIA) reported that the country's natural gas inventories increased by 71 billion cubic feet (Bcf) for the week ended May 7 as against market expectations for a build of 71 Bcf. Natural gas in storage was 2,029 Bcf as of May 7, 2021.
The trajectory of inventories is rising but remains within the 5-year average range and below the 5-year average for this time of year.
National Oceanic and Atmospheric Administration forecast the weather to be warmer than normal throughout most of the United States over the next 6-10 and 8-14 days.
The commodity has been trading higher than 5, 20, 50, 100 and 200 days' moving averages on a daily chart. The momentum indicator Relative Strength Index (RSI) is at 58.84 which indicates positive movement in the prices.
At 0930 (GMT), the natural gas price gained 0.27 percent quoting at $2.98 per mmBtu in New York.
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