Natural gas yesterday settled down by -3.06% at 212.2 on expectations of weak demand heading into a seasonally slow season and as relief from heat waves raised the prospect of less consumption for cooling. Gas prices are drifting back down on some expected temperature moderation as production maintains at a lofty level.
Meteorologists forecast the weather in the Lower 48 states will remain hotter than normal through at least Sept. 2, but, deviations from normal are declining. The U.S. Energy Information Administration (EIA) said utilities added 35 billion cubic feet (bcf) of gas into storage during the week ended Aug. 11, filling stockpiles to 3,065 bcf. That was 10.8% above the five-year (2018-2022) average. Refinitiv said average gas output in the Lower 48 states was 101.7 bcfd so far in August, nearly the same as the 101.8 bcfd in July, and not far from a monthly record of 102.2 bcfd in May. Data provider Refinitiv forecast U.S. gas demand, including exports, would mostly remain unchanged from 103.6 billion cubic feet per day (bcfd) this week to 103.8 bcfd next week.
Technically market is under fresh selling as the market has witnessed a gain in open interest by 22.91% to settle at 38981 while prices are down -6.7 rupees, now Naturalgas is getting support at 208.7 and below same could see a test of 205.1 levels, and resistance is now likely to be seen at 217.7, a move above could see prices testing 223.1.