Natural gas futures rise 0.28% to Rs 177.1 per mmBtu

Natural gas futures rose to Rs 177.10 per mmBtu on August 17 as participants increased their long positions. Prices gained 5.3 percent last week on the NYMEX.

The commodity was supported by hot weather in parts of the US, which boosted cooling demand as household increased their usage of air conditioners, and revival in US gas exports.

The number of rigs drilling natural gas in the US increased by one to 70 rigs, the second time it has risen in three weeks.

In the futures market, natural gas for August delivery touched an intraday high of Rs 178.9 and a low of Rs 176.4 per mmBtu on the Multi-Commodity Exchange (MCX). So far in the current series, the commodity has touched a low of Rs 121.4 and a high of Rs 178.9.

Natural gas for August delivery gained Rs 0.5, or 0.28 percent, to Rs 177.1 per mmBtu at 14:46 hours IST on a business turnover of 6,845 lots. The same for September delivery jumped by Rs 0.8, or 0.43 percent at Rs 188 per mmBtu on a business volume of 1,690 lots.

The value of August and September contracts traded so far is Rs 571.55 crore and Rs 22.26 crore, respectively.

"Natural gas has surged to December 2019 highs. While overall momentum looks positive, we may see choppy trade due to mixed factors. One needs to wait for lower levels to create fresh long positions," according to Kotak Securities.

At 09:20 (GMT), the natural gas was trading 0.38 percent higher at $2.36 per mmBtu in New York.

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