Commodity Trading Tips for Natural gas by KediaCommodity

Ajay Kumar Kedia 12 September 2013

Naturalgas settled flat at 229.70 and still trading below 230 level as market participants looked ahead to Thursday's closely-watched US supply data to gauge the strength of demand from US households. Market expect this week's storage data to show an increase of 64 billion cubic feet. The five-year average for the week is a build of 62 billion cubic feet. Total US natural gas storage stood at 3.188 trillion cubic feet as of last week, 1.4% above the five-year average and 6.2% below last year's unusually high level. Meanwhile, investors continued to focus on near-term weather forecasts to gauge the strength of demand for the fuel. Updated weather forecasting models pointed to warmer-than-normal temperatures across most parts of the US Midwest through mid-September, boosting near-term demand expectations. Market participants also monitored tropical storm activity in the Gulf of Mexico, amid concerns over a disruption to supplies from the region. The US National Hurricane Center said Tropical Storm Gabrielle was moving north toward Bermuda, while Tropical Storm Humberto was moving northwest. Energy traders track tropical storm activity in the event it disrupts production in the Gulf of Mexico, which is home to 10% of US natural gas production. Technically market is under fresh buying as market has witnessed gain in open interest by 0.17% to settled at 5980 while prices up 0.9 rupee, now Naturalgas is getting support at 225.6 and below same could see a test of 221.6 level, And resistance is now likely to be seen at 232.7, a move above could see prices testing 235.8.