Naturalgas on MCX settled up 1.37% at 206.70 on short covering while trader are caution for recent move as over the near term this gains are questionable, given the upcoming weather forecast, ahead of the weekly US Energy Information Administration natural gas storage report. According to natgasweather.com, much of the country will experience comfortable highs of 50’s to 80’s through next week. There will still be numerous weather systems impacting the country daily, but, there is not much cold air associated with each system. As far as highs today, the East Coast will be quite pleasant with 70’s to even lower 80’s, including into major Northeast cities like Washington D.C. and NYC. The net result is light national demand the next several days. High pressure continues to hold strong over the central, southern, and eastern US as highs continue to reach the 60s to 80s. The exceptions will be West and Upper Great Lakes will be the exceptions to the slightly cooler side as seasonal weather systems bring rain and snow showers. Warmer weather systems with showers and thunderstorms over the South and TX, but with limited cooling and impact on demand. Weather systems will track across the Upper Great Lakes and Northeast Thu-Fri and Mon-Tue for slight and increases in heating demand. Overall, national nat gas demand will be LOW. The US EIA said in its weekly report that natural gas storage in the U.S. rose by 2bcf in the week ended March 31, compared to forecasts for a build of 7 billion. Technically market is getting support at 204 and below same could see a test of 201.3 level, And resistance is now likely to be seen at 208.3, a move above could see prices testing 209.9.
Naturalgas trading range for the day is 201.3-209.9.
Natural gas recovered on short-covering ahead of the weekly US Energy Information Administration natural gas storage report.
Weather systems will track across the Upper Great Lakes and Northeast Thu-Fri and Mon-Tue for slight and increases in heating demand.
Traders monitored shifting weather forecasts to assess the outlook for early-spring demand and supply levels.