Commodity Trading Tips for Natural Gas by Kedia Commodity
Naturalgas settled up 1.38% at 227.60 posted strong gains after official US data revealed that inventories rose less than markets were expecting last week. The US Energy Information Administration said in its weekly report that natural gas storage in the US in the week ending Aug. 16 rose by 57 billion cubic feet, well below market expectations for an increase of 69 billion cubic feet. Inventories increased by 43 billion cubic feet in the same week a year earlier, while the five-year average change for the week is a build of 56 billion cubic feet. Total US natural gas storage stood at 3.063 trillion cubic feet as of last week. Stocks were 238 billion cubic feet less than last year at this time and 44 billion cubic feet above the five-year average of 3.019 trillion cubic feet for this time of year. The report showed that in the East Region, stocks were 103 billion cubic feet below the five-year average, following net injections of 47 billion cubic feet. Stocks in the Producing Region were 88 billion cubic feet above the five-year average of 969 billion cubic feet after a net injection of 4 billion cubic feet. Weather reports supported prices as well. Updated weather forecasting models continued to call for normal to above-normal temperatures for much of the country through early September, which should hike demand for natural gas at the country's thermal power generators as homes and businesses ramp up their air conditioning. Technically market is under short covering as market has witnessed drop in open interest by -8.47% to settled at 5630 while prices up 3.1 rupee, now Naturalgas is getting support at 224.8 and below same could see a test of 222 level, And resistance is now likely to be seen at 230.3, a move above could see prices testing 233.
Trading Ideas:
Naturalgas trading range for the day is 222-233.
Natural gas rose after official U. S. data revealed that inventories rose less than markets were expecting last week.
U. S. EIA said in its weekly report that natural gas storage in the U. S. rose by 57 billion cubic feet
Inventories increased by 43 bcf in same week a year earlier, while the five-year average change for the week is a build of 56 bcf.