Commodity Trading Tips for Natural gas by KediaCommodity

Ajay Kumar Kedia 13 September 2013

Naturalgas settled up 1.26% at 232.6 after a report from the U. S. Energy Information Administration showed that natural gas supplies rose less-than-expected last week. Market participants also continued to focus on near-term weather forecasts to gauge the strength of demand for the fuel. The U. S. Energy Information Administration said in its weekly report that natural gas storage in the U. S. in the week ended September 6 rose by 65 billion cubic feet, just below market expectations for an increase of 66 billion cubic feet. Inventories increased by 27 billion cubic feet in the same week a year earlier, while the five-year average change for the week is a build of 62 billion cubic feet. Total U. S. natural gas storage stood at 3.253 trillion cubic feet as of last week. Stocks were 172 billion cubic feet less than last year at this time and 46 billion cubic feet above the five-year average of 3.207 trillion cubic feet for this time of year. The report showed that in the East Region, stocks were 114 billion cubic feet below the five-year average, following net injections of 49 billion cubic feet. Stocks in the Producing Region were 106 billion cubic feet above the five-year average of 993 billion cubic feet after a net injection of 14 billion cubic feet. Updated weather forecasting models pointed to warmer-than-normal temperatures across most parts of the U. S. Midwest through mid-September, boosting near-term demand expectations. Market participants also monitored tropical storm activity in the Gulf of Mexico, amid concerns over a disruption to supplies from the region. Technically market is under fresh buying as market has witnessed gain in open interest by 1.24% to settled at 6054 while prices up 2.9 rupee, now Naturalgas is getting support at 227.2 and below same could see a test of 221.8 level, And resistance is now likely to be seen at 236.4, a move above could see prices testing 240.2.