Natural Gas futures jumped up on Thursday after data revealed U.S. inventories
dropped more last week than markets were expecting. On
the New York Mercantile Exchange, natural gas futures for delivery in December
were up 0.92% at $4.411 per million British thermal units during U.S. trading.
The commodity hit a session low of $4.253, and a high of $4.500.December
contract settled up 2.99% on Wednesday to end at $4.371 per million British
thermal units.
Natural gas futures are likely
to find support at $4.113 per million British thermal units, Monday's low, and
resistance at $4.508, Wednesday's high. On MCX major support is at 256 whereas
it can face resistance at 280 , breach of 280 can lead it towards 288-292 .
U.S. Energy Information
Administration said in its weekly report that natural gas storage in the U.S.
in the week ending Nov. 14 fell by 17 billion cubic feet, more than
expectations for a decline of 12 billion and compared to a gain of 40 billion
in the previous week. Five-year average change for the week is a decrease of 10
billion cubic feet. Total U.S. natural gas storage stood at 3.594 trillion
cubic feet. Stocks were 201 billion cubic feet less than last year at this time
and 244 billion cubic feet below the five-year average of 3.838 trillion cubic
feet for this time of year.
Elsewhere, updated weather forecasting models showed that
temperatures were expected to be below normal across most of the contiguous
U.S. through November 27.Frigid weather outlook sent natural gas prices soaring
on Wednesday amid expectations for households and business to crank up their
heating and send thermal power plants burning more of the commodity to meet
demand. Mild weather should settle in afterwards, though fresh blasts of frigid
air could follow and drive more demand for heating down the road into December.
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