Natural gas futures rise 1.08% to Rs 215.10 per mmBtu on positive global cues

Natural gas futures traded firm at Rs 215.10 per mmBtu on November 10 as participants increased their long positions as seen by the open interest. The price of natural gas had declined 1 percent yesterday on the NYMEX.

The price has turned range-bound amid mixed factors such as mild weather reduced heating demand, steady production and reduced attractiveness for US LNG exports, and worries about rising coronavirus cases in the US.

In the futures market, natural gas for November delivery touched an intraday high of Rs 216.50 and an intraday low of Rs 210.80 per mmBtu on MCX. So far in the current series, natural gas has touched a low of Rs 210.10 and a high of Rs 251.30.

Natural gas delivery for November gained Rs 2.30, or 1.08 percent, to Rs 215.10 per mmBtu at 14:18 hours IST with a business turnover of 13,719 lots.

Natural gas delivery for December rose by Rs 2, or 0.89 percent, to Rs 225.70 per mmBtu with a business volume of 1,400 lots.

The value of November and December contracts traded so far is Rs 1,071.43 crore and Rs 26.25 crore, respectively.

Natural gas may witness choppy trade amid mixed factors; however, general bias still remains weak owing to weaker demand expectations, said Kotak Securities.

At 08:51 (GMT), the natural gas price was up 1.22 percent quoting at $2.89 per mmBtu in New York.