Natural gas futures down 3.82% to Rs 181.50 per mmBtu in afternoon trade

Natural gas futures edged lower to Rs 181.50 per mmBtu on September 2 as participants increased their short position as seen by the open interest. Natural gas prices slipped 3.9 percent yesterday on Nymex.

Natural gas prices came under pressure on easing supply concerns as producers restarted some production in the Gulf of Mexico as storm activity subsided.

According to the US Bureau of Safety and Environmental Enforcement, about 24.96 percent of Gulf of Mexico crude production was closed as of September 1.

In the futures market, natural gas for September delivery touched an intraday high of Rs 186.30 and an intraday low of Rs 180.60 per mmBtu on MCX. So far in the current series, natural gas has touched a low of Rs 131.30 and a high of Rs 203.

Natural gas delivery for September slipped Rs 7.20, or 3.82 percent, to Rs 181.50 per mmBtu at 14:51 hours IST, with a business turnover of 12,679 lots.

Natural gas delivery for October was down Rs 4, or 1.86 percent, at Rs 210.70 per MMBtu, with a business volume of 1,789 lots.

The value of September and October’s contracts traded so far is Rs 1,398.98 crore and Rs 45.18 crore, respectively.

Natural gas has rallied sharply in the last few days and is now correcting amid lack of fresh positive triggers. We, however, do not expect a sustained decline as improving export prospect may keep a check on the downside, said Kotak Securities.

At 09:24 (GMT), the natural gas prices declined 1.94 percent quoting at $2.48 per mmBtu in New York.