Natural gas futures increase by almost 2.5%

Natural gas futures price rose on August 2 on short supply, low production, and stable LNG demand. The gas prices had dropped 3.97 percent last week on the NYMEX.

The energy commodity continued gains following a gap-up start, following the bullish global cues.

The gas delivery for August advanced Rs 7, or 2.41%, to Rs 297 by mmBtu at 14:25 hours. It had a business turnover of 12,701 lots.

Gas delivery for September transferred 2.26%, or Rs 6.60, to Rs 298.10 per mmBtu, with a business quantity of 2,016 lots.

The number of August and September’s contracts traded so far is Rs 970.76 crore and Rs 66.82 crore, individually.

MCX iCOMDEX Natural Gas Index improved 84.33 points or 2.38 per cent to 3,628.50.

NS Ramaswamy is the Head of Commodities at Ventura Securities. According to him, MCX NATURAL GAS prices traded positive for the entire week as per their last week’s view. They assume the uptrend to proceed further. Prices may go towards Rs 350 level in future sessions. Any drop in the prices can be practised as a chance to build a long position on the counter.

Sriram Iyer is the Senior Research Analyst at Reliance Securities. According to them, MCX natural gas started noticed this Monday morning and early afternoon Asian trade. Technically, NYMEX natural gas could sell in a variety of $3.90-4.10 levels in the coming session.

As per US CFTC data, natural gas theorists put their net long US futures and options positions by 13,508 contracts to 75,724 for the week finished July 27.

In its weekly report, Baker Hughes stated the number of rigs drilling natural gas in the US dropped by 1 to 103 rigs for the week to July 30.

Technicals

The commodity has been trading more distinguished than 5, 20, 50, 100, and 200 days’ single moving averages and exponential moving averages on the daily chart. The momentum pointer Relative Strength Index (RSI) is at 63.24, suggesting upbeat movement in the price.

Kshitij Purohit, Product Manager, Currency & Commodities, CapitalVia Global Research Limited, stated that natural gas has been trading with bullish force.

The critical support would be at 15-SMA of hourly chart set at Rs 291.50, and the direct resistance would be at Rs 298.50.

At 0909 GMT, the natural gas price was higher, 2.45% at $3.99 per mmBtu in New York.