Natural gas futures traded lower at Rs 241.90 per mmBtu on October 29 as participants increased their short positions. Prices declined 0.6 percent on the NYMEX on October 28.

After testing the highest level since January 2019, natural gas is struggling to build momentum amid mixed factors and squaring off of positions near contract expiry and weekly inventory report.

However, natural gas prices were supported by the disruption caused by hurricane Zeta in the Gulf of Mexico, increased heating demand and higher LNG exports.

In the futures market, natural gas for November delivery touched an intraday high of Rs 245.20 and a low of Rs 241.40 per mmBtu on the Multi-Commodity Exchange (MCX). So far in the current series, natural gas has touched a low of Rs 222 and a high of Rs 248.90.

Natural gas futures for October delivery dropped Rs 2, or 0.82 percent, to Rs 241.90 per mmBtu at 14:25 hours IST on a business turnover of 10,565 lots. The same for December delivery dipped Rs 1.90, or 0.75 percent, to Rs 251.50 per mmBtu on a business volume of 1,182 lots.

The value of November and December’s contracts traded so far is Rs 1,072.13 crore and Rs 24 crore, respectively.

“Natural gas continues to hold near $3/mmBtu level, which shows overall momentum is positive. However, mixed factors may cause some choppiness, so it is advisable to wait for lower levels to create fresh long positions,” Kotak Securities said.

Geojit Financial Services said natural gas prices continues to move higher as long as it holds the support of Rs 226. “Reversal momentum may be seen only a break of Rs 217.”

At 09:02 (GMT), the natural gas prices were down a percent at $3.25 per mmBtu in New York.