Natural gas increased by 0.68% to close at Rs 265.8, buoyed by anticipations of heightened demand and continued robust flows to LNG export terminals. The most recent EIA data revealed a 36 Bcf injection for the week ending March 27, which stands in stark contrast to the five-year average withdrawal of 4 Bcf, suggesting a relatively stable supply environment.

Geopolitical tensions continued to capture attention as U.S. President Donald Trump issued a warning regarding potential strikes on Iran should the Strait of Hormuz remain closed, a demand that Iran has dismissed. Notwithstanding this, U.S. natural gas markets continue to exhibit a degree of insulation from global disruptions, given that export terminals are functioning at or near full capacity. Reports indicate that LNG tankers from Qatar are making their way toward the Strait, suggesting a potential gradual resumption of exports from the region.

In terms of fundamentals, total U.S. gas inventories increased to 1.865 trillion cubic feet, reflecting a rise of approximately 5.4% compared to the previous year and standing 3% above the five-year average. Anticipating future trends, the EIA projects that production will escalate to unprecedented levels, achieving 109.5 bcfd by 2026, despite a modest decrease in domestic demand.

From a technical perspective, the market is experiencing new buying activity, as evidenced by a 5.82% rise in open interest, bringing it to 34,387. Immediate support is observed at Rs 261, with potential further decline towards Rs 256.3. On the upside, resistance is positioned at Rs 270.4, and a sustained movement above this threshold could propel prices toward Rs 275.1.