Natural gas witnessed more than 6% intraday gains, which was the highest gains after 7 August 2023 as pe the most recent Natural Gas Outlook. Prices jumped abruptly on a smaller-than-expected gain in weekly EIA gas inventories.
Since 15 September 2023, we are bullish on the Natural gas prices, and as per the view it hit all given targets.
The most-active November gas contract on the New York Mercantile Exchange’s Henry Hub hovered at $3.216 per mmBtu, or million metric British thermal units up 1.43%. Earlier in the day. MCX Natural gas gained 1.43% traded at 269.60.
The US Energy Information Administration, reported a build of just 86 billion cubic feet, or bcf, in storage of the fuel during the week to Sept. 29, compared to the 94 bcf market expectation. In the previous week to Sept. 22, storage rose by 90 bcf.
The smaller than expected build was likely caused by higher power burns by utilities last week as some lingering warmth before the advent of cooler fall temperatures led to more air-conditioning demand.
As per the Natural Gas Outlook and the EIA, total gas in US storage was at 3.088 trillion cubic feet as of last week, up 11.6% from a year ago. Earlier this year, the storage was more than 20% up year-on-year. On a five-year basis (2018-2022), inventories were just 5.3% higher, down from double-digits earlier this year.
Since their last foray into sub-$2 territory in April, gas futures have climbed some 65%, with weather, demand and production all coming together to support higher pricing.
Natural Gas Outlook | Technical Outlook:
Natural gas prices jumped more than 6% yesterday, prices hit multiple week high 269.90 and traded at 269.80 today as per latest natural gas outlook.
Formation of a long bullish candlestick is still indicating a bullish momentum in near future. Further, prices are also trading above the bullish triangle breakout which is also pointing for it. On the upside, prices would need to break above 270.50 in order to test 275.5-286.50.00, else any temporary correction towards 255-250 could attract buying activities.
Alternatively, on the downside, crucial support is seen at 230.00 and a break below only prices will retreat towards 212.50-200 (that would be a rare case).
Overall trend looks bullish and buy on dip will be perfect strategy for it.
Commodity Samachar
Learn and Trade with Ease
Also Read: Commodity Market News | US Job Numbers arriving soon. Big impacts on the commodity market today? , Commodity Market News | US Government Shutdown: Did the US avoid a big hurdle?
Recommended Read: Commodity Trading – How Important Is Geopolitical Data?