Natural Gas futures fell today after a freak surge in last session took the commodity to its highest levels in nearly five years. The US Natural gas futures jumped Wednesday, adding nearly 18% in a single session. Prices broke above $4 per mmbtu and there was no stopping for them as $5 levels drew closer. However, weak equities and lack of buying at elevated levels weighed on the commodity after such a frantic spurt. The counter currently trades at $4.62 per mmbtu, down 4.42% on the day. MCX Natural gas also soared to Rs 351 per mmbtu yesterday, racing up after the break above Rs 300 levels and added around 20% on the day. The counter currently trades at Rs 333.70 per mmbtu, down 5% on the day. Traders are looking at firm demand trends in US as natural gas in stockpiles linger around 15 year lows and cold weather forecasts are keeping the overall sentiments firm ahead of the weekly US Energy Information Administration (EIA) data. The EIA reported last Thursday that US natural gas stockpiles increased by 65 billion cubic feet for the week ending 2 November 2018. Total US stockpiles dipped slightly to 16.2% below the five-year average. Powered by Commodity Insights
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