Breaking News
0

Natural Gas Rose On Expectations Of Higher Demand

By Ajay KediaCommoditiesFeb 12, 2019 10:31
in.investing.com/analysis/natural-gas-rose-on-expectations-of-higher-demand-for-the-fuel-as-forecasts-pointe-200207631
Natural Gas Rose On Expectations Of Higher Demand
By Ajay Kedia   |  Feb 12, 2019 10:31
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Natural gas on MCX settled up 3.24% at 190.90 settled up holding on to earlier gains after gapping higher on the opening on Monday. The price action is likely being fueled by short-covering and profit-taking in reaction to oversold technical conditions and a change in the short-term weather forecast. According to NatGasWeather for February 8 to February 14, “Cold air over the Midwest will continue to fan out and advance into the southern and eastern U.S. today and Saturday, including with a wintry mix of precipitation along the cold front across the East. Temperatures behind the core of the cold front will drop into the -20s to 20s, but also with teens to 30s into Texas and the South. The West will be unsettled and cool to cold. A mild break will return across the southern and eastern U.S. early next week before another cold shot arrives mid-week with warming then following late week. Overall, national demand will be high Friday-Monday, then moderate for the rest of next week.”

Over the weekend, forecast models converged on a colder pattern developing over much of the country in the 6-11 day or in the February 17-22 period. It's possible that this cold could persist through late February into early March which would increase natural gas prices even further. Technically, some traders feel last week’s sell-off may have been a little overdone given that there are five more weeks left in winter.

Technically market is getting support at 185.7 and below same could see a test of 180.4 level. And resistance is now likely to be seen at 196, a move above could see prices testing 201.

Trading Ideas:

  • The natural gas trading range for the day is 180.4-201.
  • Natural gas rose on expectations of higher demand for the fuel as forecasts pointed to cooler weather.
  • Gas production in the Lower 48, meanwhile, rose to 86.5 bcfd from a four-month low of 85.0 bcfd on Jan. 31.
  • The U.S. EIA said that utilities pulled 237 billion cubic feet (bcf) of gas from inventories during the brutally cold week ended Feb. 1.
Natural Gas Rose On Expectations Of Higher Demand
 
Natural Gas Rose On Expectations Of Higher Demand

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments
vishnu kant upadhyay
vishnu kant upadhyay Feb 13, 2019 11:17
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Very nice article kedia ji
Reply
1 0
krishnaraj raj
krishnaraj raj Feb 13, 2019 9:33
Saved. See Saved Items.
This comment has already been saved in your Saved Items
NG is ready for launch but when ?
Reply
0 0
Chandan Kumar
ChandanKumar Feb 12, 2019 18:59
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Hi
Reply
0 0
Vipin Rastogi
Vipin Rastogi Feb 12, 2019 11:06
Saved. See Saved Items.
This comment has already been saved in your Saved Items
good day
Reply
0 0
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email