Natural gas prices declined by 0.76%, closing at Rs 248.7, influenced by a storage build that exceeded expectations and predictions indicating milder weather along with reduced demand in the short term. The most recent figures indicated a 50 bcf injection into storage, slightly exceeding expectations, which suggests a favorable supply environment as the sector transitions into the injection season.

Weather continues to play a crucial role, as temperatures are projected to remain above average until April 24, thereby constraining both heating and cooling requirements. Consequently, total gas consumption is anticipated to decrease from 108.1 bcfd this week to approximately 100.1 bcfd in the following week.

Concurrently, production continues to exhibit robustness, with output in the Lower 48 states averaging over 111 bcfd in April, nearing record highs, despite experiencing short-term fluctuations attributed to regional declines. Geopolitical developments, including ongoing US-Iran discussions, are under observation; however, their influence on US gas prices is constrained by a strong domestic supply and limitations in export capacity.

From a technical perspective, the market is experiencing new selling pressure, as evidenced by a 2.99% increase in open interest to 41,363, suggesting the establishment of new short positions. Immediate support is identified at Rs 246.3, with a breach below expected to challenge Rs 243.8. On the upside, resistance is positioned at Rs 252, and a breach of this level may propel prices toward Rs 255.2.