Natural gas futures soared to Rs 186.40 per mmBtu on January 1 as participants increased their long positions as seen by the open interest. Natural gas price had jumped 4.83 percent on December 31 on the NYMEX.
The US Energy Information Administration (EIA) reported that US natural gas inventories fell by 114 Bcf for the week ended December 25, against market expectations of 104 Bcf.
Natural gas ended 2020 with a gain of 17.10 percent in 2020, against 26.72 percent decline in 2019.
Natural gas prices were supported by the expectation of colder weather and strong US gas exports.
MCX iCOMDEX Natural Gas Index inched higher 54.24 points, or 2.42 percent, to 2,299.05.
In the futures market, natural gas for January delivery touched an intraday high of Rs 188 and an intraday low of Rs 182.70 per mmBtu on the MCX. So far in the current series, natural gas has touched a low of Rs 167.40 and a high of Rs 255.90.
Natural gas delivery for January climbed Rs 4.30, or 2.36 percent, to Rs 186.40 per mmBtu at 14:22 hours IST with a business turnover of 9,631 lots.
Natural gas delivery for February gained Rs 3.70, or 2.02 percent, to Rs 186.50 per mmBtu with a business volume of 997 lots.
The value of January and February’s contracts traded so far is Rs 228.85 crore and Rs 9.13 crore, respectively.
MCX Natural gas price is expected to trade in a sideways trend having good support at Rs 183 level and strong resistance at RS 187.50 level, according to Motilal Oswal.
At 08:55 (GMT), the natural gas price was up 5.08 percent quoting at $2.54 per mmBtu in New York.
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