Natural gas futures slide to Rs 195.60 per mmBtu on January 8 after the US Energy Information Administration (EIA) reported that US natural gas inventories fell by 130 Bcf for the week ended January 1 against market expectations of a 142 Bcf.
Natural gas price had gained 0.5 percent yesterday on the NYMEX.
Natural gas prices turned rangebound amid mixed factors and as price moves near to the key $2.8/mmBtu levels.
The natural gas price came under pressure on higher US gas production and rising coronavirus cases.
MCX iCOMDEX Natural Gas Index fell 65.33 points or 2.64 percent to 2,413.70.
In the futures market, natural gas for January delivery touched an intraday high of Rs 198.80 and an intraday low of Rs 194.50 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 slipped Rs 5.30, or 2.73 per cent, to Rs 195.60 per mmBtu at 14:34 hours IST with a business turnover of 9,508 lots.
Natural gas delivery for February declined Rs 4.60, or 2.31 percent, to Rs 194.60 per mmBtu with a business volume of 2,297 lots.
The value of January and February’s contracts traded so far is Rs 1,334.89 crore and Rs 46.87 crore, respectively.
Natural gas may remain witness choppy trade unless there are fresh triggers but we may see some correction if it fails to break past the $2.8/mmBtu level, said Kotak Securities.
At 09:08 (GMT), the natural gas price was down 2.42 percent quoting at $2.66 per mmBtu in New York.
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