Natural gas futures traded in a tight range on May 7 tracking firm global cues. The commodity has been unable to break out or break down after slightly less than expected build US gas inventories reported by EIA.
On the Multi-Commodity Exchange (MCX), Natural gas delivery for May gained Rs 0.80, or 0.37 percent, to Rs 216.40 per mmBtu at 14:39 hours IST with a business turnover of 19,946 lots.
Natural gas delivery for June rose Rs 0.80, or 0.36 percent, to Rs 220.60 per mmBtu with a business volume of 2,671 lots.
The value of May and June’s contracts traded so far is Rs 459.40 crore and Rs 17.77 crore, respectively.
MCX iCOMDEX Natural Gas Index was up 10.01 points or 0.37 percent to 2,707.91.
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 supports are at $ 2.903 and $ 2.876 whereas resistances are at $ 2.9664-2.9898.
On the MCX Natural Gas May resistances remain at Rs 218.40-221.30 whereas supports are at Rs 213.60-211.50 levels”, Iyer added.
The US Energy Information Administration (EIA) reported that the country’s natural gas inventories increased by 60 billion cubic feet (Bcf) for the week ended April 30 as against market expectations of a 64 Bcf rise. Natural gas in storage was 1,958 Bcf as of April 30, 2021.
Weather forecasts are largely calling for seasonal weather while the market focus shifts to summer-related cooling demand.
Natural gas has been struggling for direction after briefly testing the $ 3/mmBtu levels. With no surprise from the inventory report and mixed weather outlook, we may see some extended losses, said Kotak Securities.
Technicals
The commodity has been trading higher than 20, 50, 100 and 200 days’ moving averages but lower than the 5-day moving average on a daily chart. The momentum indicator Relative Strength Index (RSI) is at 59.89 which indicates positive movement in the prices.
At 0921 (GMT), the natural gas price soared 0.34 percent quoting at $ 2.93 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.
