Natural gas futures climbed to settle at Rs 185.40 per mmBtu on January 1 as participants reduced their position as seen by the open interest. Natural gas price had declined Rs 2.10 or 1.12 percent during the week on the MCX.
Natural gas ended 2020 with a gain of 17.10 percent as against a 26.72 percent decline in 2019.
The demand for Natural Gas has been steady last week amid a slight increase in the residential sector and fall in the power sector to 112.2 billion cubic feet per day (Bcf/d) against 112 Bcf/d in the prior week, according to PointLogic Energy.
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.
The number of rigs drilling natural gas in the US was unchanged at 83 rigs for the week to December 31, said Baker Hughes in a weekly report.
MCX iCOMDEX Natural Gas Index rose 40.68 points, or 1.81 percent to close at 2,285.49.
Sunand Subramaniam, Senior Research Associate, Choice Broking said, “Fundamentally for the weeks ahead, we are estimating MCX Natural Gas futures to trade mixed to bullish in expectancy of steady supplies, improved demand/usage and fall in inventories observed on a weekly basis. The US CPC expects developed weather conditions for the next 6-10 days which is expected to support prices in the week ahead. Overall, we expect mixed to a bullish trend in MCX Natural Gas futures in the coming week”, Subramanium noted.
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 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 rose Rs 3.30, or 1.81 percent to settle at Rs 185.40 per mmBtu with a business turnover of 6,988 lots.
Natural gas delivery for February gained Rs 2.70, or 1.48 percent, to close at Rs 185.50 per mmBtu with a business volume of 1,005 lots.
The value of January and February’s contracts traded on January 1 was Rs 566.09 crore and Rs 18.65 crore, respectively.
Natural gas price settled with a gain of 5.08 percent quoting at $2.54 per mmBtu in New York.
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