Natural gas on MCX settled down -0.52% at 211.20 traded in the range while Natural gas prices whipsawed attempting to move higher but running into resistance.
A warmer than normal forecast for the next 6-14 days from the NOAA is undermining prices. While inventories remain below the 5-year average range for this time of year, the trajectory is becoming less negative, which is allowing prices to remain subdued. The top end of the 5-year average price range is $6.49 per mmbtu.
The EIA recently reported that withdrawals from working gas storage are lower than the five-year average for the second week in a row. Net withdrawals from storage totalled 141 Bcf for the week compared with the five-year average net withdrawals of 144 Bcf and last year’s net withdrawals of 166 Bcf during the same week.
Working gas stocks totalled 2,773 Bcf, which is 720 Bcf lower than the five-year average and 697 Bcf lower than last year at this time. Working gas stocks’ deficit to the five-year average decreased, according to the EIA, and the deficit to the bottom of the five-year range increased. In the Lower 48 states, total working gas stocks are 450 Bcf lower than the five-year minimum, and every storage region is currently lower than the bottom of its five-year range. The weather is the only thing keeping prices capped. A strong cold front will push across the Great Lakes and Northeast the next several days with lows behind the cold front reaching the 0s to 20s for strong demand.
Technically now Natural gas is getting support at 208.1 and below same could see a test of 205 level, And resistance is now likely to be seen at 214, a move above could see prices testing 216.8.
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