Natural gas futures jumped to Rs 197.50 per mmBtu on December 18 as participants increased long positions. Natural gas price had declined 1.53 percent yesterday on the NYMEX.
The US Energy Information Administration (EIA) reported that US natural gas inventories dropped by 122 billion cubic feet (bcf) for the week ended December 11.
MCX iCOMDEX Natural Gas Index inched higher 36.98 points or 1.54 percent to 2,437.12.
Kshtij Purohit, Product Manager Currency & Commodities, CapitalVia Global Research said, “Natural Gas Price trading negative momentum as fail to cross Rs 200 levels which is 21 Days SMA also. The price is expected to trade between Rs 193-202 levels.” Inventory fall and Cold weather may take price higher, he said.
In the futures market, natural gas for December delivery touched an intraday high of Rs 197.70 and an intraday low of Rs 195.10 per mmBtu on MCX. So far in the current series, natural gas has touched a low of Rs 175.90 and a high of Rs 259.80.
Natural gas delivery for December rose Rs 3.70, or 1.91 percent, to Rs 197.60 per mmBtu at 14:31 hours IST with a business turnover of 12,338 lots.
Natural gas delivery for January gained Rs 3, or 1.54 percent, to Rs 197.70 per mmBtu with a business volume of 2,007 lots.
The value of December and January’s contracts traded so far is Rs 700.61 crore and Rs 35.99 crore, respectively.
MCX Natural gas will trade in a range for the session with support placed at Rs 192-189 whereas resistance is at Rs 200-202.