Natural gas prices experienced a modest increase, closing up by 0.14% at Rs 357.9, bolstered by supply disruptions and anticipated colder weather conditions. The market found support following a temporary reduction in gas supplies from Norway’s significant Troll field, attributed to external power supply issues. Capacity restrictions are anticipated to persist for a day, although the exact ramifications remain unclear.

Simultaneously, projections indicating colder temperatures throughout a significant portion of the US have resulted in an increase in heating degree days for the initial weeks of January, leading utilities to acquire near-term futures positions to ensure adequate gas supply for heating requirements. Fundamental data continued to provide support. The US Energy Information Administration disclosed a withdrawal of 166 billion cubic feet from storage for the week ending December 19, aligning with expectations yet exceeding the usual seasonal draws. Total gas in storage decreased to 3,413 bcf, positioning inventories 3.6% lower than the same period last year and approximately 0.7% beneath the five-year average.

In the future, the EIA anticipates that both US natural gas production and consumption will achieve unprecedented levels by 2025. Dry gas production is anticipated to increase to 107.7 bcfd in 2025 and 109.1 bcfd in 2026, whereas domestic demand is expected to grow to 91.8 bcfd in 2025 before experiencing a slight decline in 2026, highlighting a fundamentally robust demand outlook.

From a technical perspective, the market is experiencing short covering, evidenced by a 4.56% decline in open interest to 20,477, coinciding with a slight increase in prices. Support is identified at Rs 348.8; a breach of this level could lead to a test of Rs 339.6. Resistance is established at Rs 371.9, and a sustained advance beyond this level may pave the way toward Rs 385.8.