Natural gas prices experienced a significant decline of 5.74%, concluding at Rs 254.3, reflecting the overall downturn in energy markets following a temporary ceasefire between the U.S. and Iran, which alleviated supply apprehensions. The agreement, which encompasses the reopening of the Strait of Hormuz, has alleviated concerns regarding potential disruptions, thereby exerting downward pressure on prices.

Weather outlooks are influencing the market, as forecasts indicate warmer-than-normal conditions through mid-April, anticipated to diminish demand. Concurrently, storage data contributed to the negative sentiment, as inventories increased significantly beyond both the levels of the previous year and the five-year average after a new influx. On the supply side, despite a temporary decrease in daily production attributed to declines in significant regions such as Louisiana and Arkansas, overall output continues to be robust and is projected to increase further.

The U.S. Energy Information Administration maintains its forecast for unprecedented production levels in the years ahead, whereas demand is expected to experience a modest decline before reaching a state of equilibrium. While there is some backing from heightened LNG exports, the overall perspective continues to lean towards abundant supply and subdued demand.

From a technical perspective, the market is experiencing renewed selling pressure, as evidenced by the increase in open interest coupled with declining prices, suggesting the establishment of new short positions. Immediate support is identified at Rs 251.4, with potential further decline towards Rs 248.4. Resistance is established at Rs 259.7, and a breach of this threshold may propel prices toward Rs 265.