Natural gas futures down nearly 6% to Rs 197.6/ mmBtu on weak global cues

Natural gas futures declined to Rs 198 per mmBtu on October 14 as participants increased their short positions. The commodity had slipped 0.9 percent on the NYMEX on October 13.

Prices fell after easing storm activity led to restarting of Gulf of Mexico production, thus improving supply. A sharp rise in prices in the last few days may have also led to a shift towards coal for power generation.

In the futures market, natural gas for October delivery touched an intraday high of Rs 205.10 and a low of Rs 197.60 per mmBtu on the Multi Commodity Exchange (MCX). So far in the current series, natural gas has touched a low of Rs 179.10 and a high of Rs 221.

Natural gas futures for October delivery dropped Rs 12.6, or 5.99 percent, to Rs 197.60 per mmBtu at 14:20 hours IST on a business turnover of 8,518 lots.

The same for November delivery slipped Rs 6.50, or 2.72 percent, at Rs 232.70 per mmBtu on a business volume of 2,079 lots.

The value of October and November’s contracts traded so far is Rs 1,155.92 crore and Rs 38.62 crore, respectively.

"Natural gas is seeing some correction after the sharp gains in the last few sessions. We may see extended decline until there are fresh positive triggers," Kotak Securities said in a recent note.

At 08:54 (GMT), the natural gas price was down 5.60 percent at $2.69 per mmBtu in New York.