Naturalgas on MCX settled down -0.24% at 210 as warm weather and heavy stockpiles continued to weigh on prices. This year’s gas stockpiles are already high and could possibly set a new record going into the winter. The U. S. Energy Information Administration (EIA) reported that U. S. natural gas stocks increased by 77 billion cubic feet for the week ending October 14. The five-year average for the week is an injection of around 84 billion cubic feet, and last year’s storage addition for the week totaled 87 billion cubic feet. Natural gas inventories rose by 79 billion cubic feet in the week ending October 7. Natural gas prices jumped last week on a new EIA projection for lower 2016 production and a colder winter ahead. Winter heating bills for the coming winter are projected to average $635, according to the EIA, up 22% compared with last winter but about average for the five prior winters. Stockpiles remain about 1.2% above their levels of a year ago and 5.1% above the five-year average. The EIA reported that U. S. working stocks of natural gas totaled about 3.836 trillion cubic feet, around 185 billion cubic feet above the five-year average of 3.651 trillion cubic feet and 46 billion cubic feet above last year’s total for the same period. Working gas in storage totaled 3.790 trillion cubic feet for the same period a year ago. Technically market is under long liquidation as market has witnessed drop in open interest by -1.9% to settled at 6448 while prices down -0.5 rupee, now Naturalgas is getting support at 206.9 and below same could see a test of 203.8 level, And resistance is now likely to be seen at 213.5, a move above could see prices testing 217.

Trading Ideas:

Naturalgas trading range for the day is 203.8-217.

Natural gas prices dropped as warm weather and heavy stockpiles continued to weigh on prices.

This year’s gas stockpiles are already high and could possibly set a new record going into the winter.

The U. S. EIA reported that U. S. natural gas stocks increased by 77 billion cubic feet for the week ending October 14.