Natural Gas yesterday traded with the positive node and settled 1.37% up at 152.90 as gas drillers shut down production in the Gulf of Mexico as a precaution ahead of Tropical Storm Debby. Natural gas traders continued to monitor the path of Tropical Storm Debby as it hovered in the Gulf of Mexico. The National Hurricane Center reported Debby was gaining strength on Sunday, hitting the northeastern Gulf coast with high winds and heavy rain. Oil and gas driller BP said its production in the Gulf would be completely shut in by the middle of Sunday. Market track tropical storm activity in the event it disrupts production in the Gulf of Mexico, which is home to 7% of U. S. natural gas production. The Atlantic hurricane season runs from June 1 through Nov 30. Prices usually gain when severe storms threaten production in the region. Meanwhile, prices found further support from forecasts showing warmer than normal weather across most parts of the US in the coming ten days. Despite lower production levels, US gas inventories remain at a record high for this time of year, after one of the warmest winters on record reduced demand for the heating fuel during its peak season. For today's session market is looking to take support at 150.4, a break below could see a test of 147.8 and whereas resistance is now likely to be seen at 155.6, a move above could see prices testing 158.2.
Nat. Gas trading range for the day is 147.83-158.23.
Natural gas traded higher as gas drillers shut down production in the Gulf of Mexico.
Traders eyeing on the path of Tropical Storm Debby as it hovered in the Gulf of Mexico.
Also support from the news that that North American gas producers were cutting back on production.
Natural Gas is holding with a support at 147.83 and resistance will be likely at 158.23.
SELL NAT. GAS JUNE BELOW 151 SL 154.20 TGT 149.50-147.20. MCX
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