Commodity Trading Tips for Natural Gas by KediaCommodity

Ajay Kumar Kedia 6 May 2014

Natural-Gas Naturalgas settled up 0.32% at 283.20 prices rose on Monday after bottom fishers snapped up nicely-priced positions in the commodity and erased losses stemming from last week's bearish supply report. The U.S. Energy Information Administration said in its weekly report on Thursday that natural gas storage in the U.S. in the week ending April 25 rose by 82 billion cubic feet, well above forecasts for an increase of 75 billion cubic feet. The five-year average gain for the period is 58 billion cubic feet. The numbers sent natural gas prices falling for two sessions, though by Monday, investors viewed the commodity as oversold. Total U.S. natural gas storage stood at 981 billion cubic feet. Stocks were 790 billion cubic feet less than last year at this time and 984 billion cubic feet below the five-year average of 1.965 trillion cubic feet for this time of year. The report showed that in the East Region, stocks were 466 billion cubic feet below the five-year average, following net injections of 34 billion cubic feet. Stocks in the Producing Region were 396 billion cubic feet below the five-year average of 824 billion cubic feet after a net injection of 35 billion cubic feet. Spring and fall see the weakest demand for natural gas in the U.S, as the absence of extreme temperatures curbs demand for heating and air conditioning. Approximately 52% of U.S. households use natural gas for heating, according to the Energy Department. Technically market is under short covering as market has witnessed drop in open interest by -1.29% to settled at 7987 while prices up 0.9 rupee, now Naturalgas is getting support at 280.8 and below same could see a test of 278.3 level, And resistance is now likely to be seen at 285.7, a move above could see prices testing 288.1.