Naturalgas on MCX settled down -1.98% at 203.40 prices are falling toward a two-week low after government data showed a larger-than-expected storage addition for last week. The US EIA said in its weekly report that natural gas storage in the U.S. rose by 54bcf in the week ended April 14, compared to forecasts for a build of 48 billion. That compared with a gain of 10bcf in the preceding week, an increase of 7 billion a year earlier and a five-year average rise of 35bcf.
Total natural gas in storage currently stands at 2.115 trillion cubic feet, according to the U.S. Energy Information Administration, 14.8% lower than levels at this time a year ago but 13.3% above the five-year average for this time of year. Meanwhile, a colder weather system will track over the southern and eastern U.S. from Friday through next Wednesday to bring an increase in demand to stronger levels. Natural gas prices have closely tracked weather forecasts in recent weeks, as traders try to gauge the impact of shifting forecasts on early-spring demand.
Meanwhile Weather patterns are expected to be rather bearish through Thursday due to mostly mild/warm temperatures of 60s to 80 dominating much of the country besides portions of the northern US near the Canadian border.
There will still be numerous weather systems with showers, just to the mild side. Colder weather system will track over the southern and eastern US Friday through Wednesday to bring an increase in demand to stronger levels. Overall, nat gas demand will be LOW through Thursday, then MODERATE-HIGH Saturday through Tuesday. Technically market is getting support at 201.5 and below same could see a test of 199.7 level, And resistance is now likely to be seen at 206.5, a move above could see prices testing 209.7.
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