Natural gas futures eased to Rs 208.90 per mmBtu on February 3 as participants increased their short positions as seen by the open interest. Natural gas price slipped 0.2 percent on February 2 on the NYMEX.
Natural gas pared losses after a gap down opening in the afternoon session. The gas price touched the high of $3.005/mmBtu in intra-day trade on February 2, but lost momentum and ended lower.
The prices have rallied sharply in the last few days as severe cold weather in US Northeast increased heating demand, while weather forecasts pointed towards colder weather in coming days.
Kshtij Purohit, Product Manager Currency and Commodities, CapitalVia Global Research Ltd, said, “The weather is expected to remain much colder than normal for the next 6-10 days. It may become slightly milder during the coming 15 days. Supply rose last week due to higher exports from Canada. Natural gas has support at Rs 197 levels and below it may come down to Rs 193 levels.”
MCX iCOMDEX Natural Gas Index fell 42.40 points, or 1.60 percent, to 2,607.86.
In the futures market, natural gas for February delivery touched an intraday high of Rs 211.60 and an intraday low of Rs 205.20 per mmBtu on the MCX. So far in the current series, natural gas has touched a low of Rs 169 and a high of Rs 219.80.
Natural gas delivery for February slipped Rs 3.70, or 1.74 percent, to Rs 208.90 per mmBtu at 14:37 hours IST with a business turnover of 10,818 lots.
Natural gas delivery for March edged lower Rs 2.50, or 1.19 percent, to Rs 207.30 per mmBtu with a business volume of 2,459 lots.
The value of February and March’s contracts traded so far is Rs 1,824.83 crore and Rs 76.92 crore, respectively.
Natural gas seems to have lost momentum near $3/mmBtu level and we may see some more correction amid positioning ahead of inventory report on February 4, according to Kotak Securities.
At 09:10 (GMT), the natural gas price was up 1.10 percent quoting at $2.85 per mmBtu in New York.
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