Naturalgas settled down -0.31% at 259.10 dipped on Wednesday as investors jumped to the sidelines to await the release of Thursday's weekly supply report.
Last week, the U.S. Energy Information Administration reported that natural gas storage in the U.S. in the week ending May 2 rose by 74 billion cubic feet, above forecasts for an increase of 71 billion cubic feet. Total U.S. natural gas storage stood at 1.055 trillion cubic feet, an 11-year low.
Early injection estimates for this week’s storage data range from 80 billion cubic feet to 100 billion cubic feet. The five-year average change for the week is a build of 82 billion cubic feet. Producers would need to add 2.6 trillion to 2.9 trillion cubic feet to storage by November 1 to meet typical winter demand.
Updated weather forecasting models continued to for seasonably mild weather over much of the Midwest and Northeast for the next two weeks, which was likely to lower heating demand. Approximately 52% of U.S. households use natural gas for heating, according to the Energy Department.
Mild springtime temperatures weren't forecast to rise high enough to hike demand for air conditioning, which would require power generators to burn more natural gas to meet demand.
Technically market is under fresh selling as market has witnessed gain in open interest by 6.26% to settled at 5767 while prices down -0.8 rupee, now Naturalgas is getting support at 257.8 and below same could see a test of 256.4 level, and resistance is now likely to be seen at 261.5, a move above could see prices testing 263.8.
Trading Ideas:
--Naturalgas trading range for the day is 256.4-263.8.
--Natural gas dropped as investors jumped to the sidelines to await the release of Thursday's weekly supply report.
--Natural gas seen under pressure as a weakening demand outlook combined with receding concerns over tight inventories weighed.
www.punjiniveshonline.com
Last week, the U.S. Energy Information Administration reported that natural gas storage in the U.S. in the week ending May 2 rose by 74 billion cubic feet, above forecasts for an increase of 71 billion cubic feet. Total U.S. natural gas storage stood at 1.055 trillion cubic feet, an 11-year low.
Early injection estimates for this week’s storage data range from 80 billion cubic feet to 100 billion cubic feet. The five-year average change for the week is a build of 82 billion cubic feet. Producers would need to add 2.6 trillion to 2.9 trillion cubic feet to storage by November 1 to meet typical winter demand.
Updated weather forecasting models continued to for seasonably mild weather over much of the Midwest and Northeast for the next two weeks, which was likely to lower heating demand. Approximately 52% of U.S. households use natural gas for heating, according to the Energy Department.
Mild springtime temperatures weren't forecast to rise high enough to hike demand for air conditioning, which would require power generators to burn more natural gas to meet demand.
Technically market is under fresh selling as market has witnessed gain in open interest by 6.26% to settled at 5767 while prices down -0.8 rupee, now Naturalgas is getting support at 257.8 and below same could see a test of 256.4 level, and resistance is now likely to be seen at 261.5, a move above could see prices testing 263.8.
Trading Ideas:
--Naturalgas trading range for the day is 256.4-263.8.
--Natural gas dropped as investors jumped to the sidelines to await the release of Thursday's weekly supply report.
--Natural gas seen under pressure as a weakening demand outlook combined with receding concerns over tight inventories weighed.
www.punjiniveshonline.com
