Natural gas prices surged 6.88 percent this week to settle at Rs 365.20 per mmBtu on the MCX after hitting a fresh 52-week high to touch the highest level since October 2008, during the week. The energy price rose in three out of five trading sessions on the domestic bourse.
The gas price has been a top-performing commodity in 2021, rising 14.74 percent so far in September and 100.55 percent year-to-date (YTD).
The gas price has been trading higher than the 5, 20, 50, 100, and 200-day simple moving averages (SMA) and exponential moving averages (EMA) on a daily chart. The momentum indicator Relative Strength Index (RSI) is at 74.25, which suggests an upbeat momentum in the prices and MACD is holding above the Zero Line indicating further strength in the price.
The EIA reported that the US natural gas inventories rose by 52 billion cubic feet (Bcf) for the week ended September 3. The Department of Energy in its September short-term energy outlook expects consumption of United States natural gas to decline in 2021 and 2022 from 2020 levels.
The weather is expected to be cooler in the next 8-14 days which will reduce cooling demand.
According to Bureau of Safety and Environmental Enforcement data, approximately 75.5 percent of Gulf of Mexico gas production remained shut as of September 10.
In its weekly report, Baker Hughes said the number of rigs drilling natural gas in the US fell by 1 to 101 rigs for the week to September 10.
MCX iCOMDEX Natural Gas Index fell 58.67 points or 1.31 percent to end at 4,434.11.
In the futures market, natural gas for September delivery touched an intraday high of Rs 375 and an intraday low of Rs 361.50 per mmBtu on MCX. So far in the current series, natural gas has touched a low of Rs 263.20 and a high of Rs 375.
Natural gas delivery for September dropped Rs 4.30, or 1.16 percent to settle at Rs 365.20 per mmBtu with a business turnover of 11,652 lots.
Natural gas delivery for October slipped by Rs 4.80, or 1.29 percent, to close at Rs 368.50 per mmBtu with a business volume of 4,815 lots.
The September and October contracts traded on Friday were at Rs 2,749.42 crore and Rs 199.71 crore, respectively.
Natural gas price settled with a loss of 1.39 percent at $ 4.96 per mmBtu in New York.
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