Naturalgas on MCX settled down -1.52% at 214.5 as prices dropped on profit booking after prices gained forecasts showed unseasonably high temperatures that would prop up demand for the power-plant fuel, trimming a supply glut. Prices also seen supported as meteorologists predicted warmer-than-normal weather across most of the lower 48 states from Oct. 12 to Oct. 21. Meanwhile, traders are speculating that Hurricane Matthew will cause fewer power outages in the U. S. Southeast than expected, keeping gas demand elevated. Electricity generators have burned record amounts of gas amid hot weather, limiting gains in stockpiles of the fuel. An inventory surplus to the five-year average has contracted for 26 straight weeks, boosting chances that supplies will fall below normal just as wintry weather stokes demand. Hurricane Matthew was earlier downgraded to Category 3 with winds of 120 miles (193 kilometers) an hour. The storm was 35 miles east-northeast of Daytona Beach, Florida, the U. S. National Hurricane Center in Miami said. Traders were reportedly buoyed on predictions from meteorologists of unseasonably warm weather in the forty-eight contiguous states from 12 October to 21 October, which is expected to increase demand and trim the fat off the supply glut, which stand at 3.68 trillion cubic feet—74 billion cubic feet above that of a year ago. The U. S. Energy Information Administration said in its weekly report that natural gas storage in the U. S. rose by 80 billion cubic feet in the week ended September 30, above expectations for an increase of 70 billion cubic feet. Technically now Naturalgas is getting support at 212.8 and below same could see a test of 211.2 level, And resistance is now likely to be seen at 216.9, a move above could see prices testing 219.4.

Trading Ideas:

Naturalgas trading range for the day is 211.2-219.4.

Naturalgas on MCX settled up 4.17% at 212.4 as forecasts showed unseasonably high temperatures that would prop up demand for the power-plant fuel, trimming a supply glut. Prices also seen supported as meteorologists predicted warmer- than-normal weather across most of the lower 48 states from Oct. 12 to Oct. 21. Meanwhile, traders are speculating that Hurricane Matthew will cause fewer power outages in the U. S. Southeast than expected, keeping gas demand elevated. Electricity generators have burned record amounts of gas amid hot weather, limiting gains in stockpiles of the fuel. An inventory surplus to the five-year average has contracted for 26 straight weeks, boosting chances that supplies will fall below normal just as wintry weather stokes demand. Hurricane Matthew was earlier downgraded to Category 3 with winds of 120 miles (193 kilometers) an hour. The storm was 35 miles east-northeast of Daytona Beach, Florida, the U. S. National Hurricane Center in Miami said. Traders were reportedly buoyed on predictions from meteorologists of unseasonably warm weather in the forty-eight contiguous states from 12 October to 21 October, which is expected to increase demand and trim the fat off the supply glut, which stand at 3.68 trillion cubic feet—74 billion cubic feet above that of a year ago. The U. S. Energy Information Administration said in its weekly report that natural gas storage in the U. S. rose by 80 billion cubic feet in the week ended September 30, above expectations for an increase of 70 billion cubic feet. Technically market is under fresh buying as market has witnessed gain in open interest by 15.94% to settled at 7577 while prices up 8.5 rupee, now Naturalgas is getting support at 205 and below same could see a test of 197.5 level, And resistance is now likely to be seen at 217.3, a move above could see prices testing 222.1.

Prices also seen supported as meteorologists predicted warmer-than-normal weather across most of the lower 48 states from Oct. 12 to Oct. 21.

Elsewhere in the U. S., gas-drilling activity has essentially slowed to a stop as prices have made many wells uneconomical.