Natural gas futures slump about 3.6% to around Rs 199 per mmBtu

Natural gas futures trade lower at Rs 198.70 per mmBtu on October 19 as participants increased their short positions as seen by the open interest. Natural gas had declined 0.07 percent last week on the NYMEX.

The number of rigs drilling natural gas in the US rose by 1 to 74 for the week ending October 16.

In the futures market, natural gas for October delivery touched an intraday high of Rs 205.50 and an intraday low of Rs 195.60 per mmBtu on 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 delivery for October fell Rs 7.50, or 3.64 percent, to Rs 198.70 per mmBtu at 15:07 hours IST with a business turnover of 8,082 lots.

Natural gas delivery for November slipped Rs 3.10, or 1.28 percent, to Rs 239.40 per mmBtu with a business volume of 2,625 lots.

The value of October and November’s contracts traded so far is Rs 1,234.06 crore and Rs 57.87 crore, respectively.

Geojit Financial Services said, “Expect an initial correction but prices later if it holds the support of Rs 194. Major liquidation is seen only a break of Rs 178.”

At 09:43 (GMT), the natural gas price was down 2.27 percent quoting at $2.71 per mmBtu in New York.