Natural gas futures up 1.11% to Rs 164.1 per mmBtu in afternoon trade

Natural gas futures surged to Rs 164.10 per mmBtu on August 14 as participants increased their long positions. The commodity gained 1.4 percent on NYMEX on August 13.

The US Energy Information Administration (EIA) reported that US natural gas inventories increased by 58 billion cubic feet (bcf) for the week-ended August 7.

The natural gas prices were supported by a pickup in US gas exports and signs of an economic recovery.

In the futures market, natural gas for August delivery touched an intraday high of Rs 164.60 and a low of Rs 163.10 per mmBtu on the Multi-Commodity Exchange (MCX). So far in the current series, the commodity has touched a low of Rs 121.40 and a high of Rs 171.60.

Natural gas futures for August delivery gained Rs 1.8, or 1.11 percent, to Rs 164.1 per mmBtu at 14:47 hours IST on a business turnover of 8,462 lots. The same for September increased by Rs 1.4, or 0.81 percent, at Rs 174.7 per mmBtu on a business volume of 1,227 lots.

The value of August and September contracts traded so far is Rs 432.50 crore and Rs 9.01 crore, respectively.

Natural gas is expected to trade positively with support at Rs 160 level and Rs 162.50 levels, according to Motilal Oswal. The brokerage firm advised its clients to buy on dips targeting higher resistance at Rs 166.5-169 zone.

At 09:19 (GMT), the natural gas price was up 0.18 percent at $2.18 per mmBtu in New York.