Natural gas prices edged up by 0.2% to settle at 256.3 as several factors influenced the market. First, the amount of natural gas flowing to liquefied natural gas (LNG) export plants reached near-record levels. Additionally, cooler weather and anticipated higher heating demand in the coming two weeks boosted prices. However, meteorologists predicted milder weather than usual through early November, which may keep demand lower for this time of year.
A critical aspect impacting prices is the substantial gas output, with average production in the Lower 48 U.S. states reaching 103.6 billion cubic feet per day in October. While this is up from September, traders are cautious about lower-than-usual demand despite the record output. U.S. gas demand, including exports, is expected to hover around 97.7 billion cubic feet per day this week and the next, with fluctuating forecasts. In terms of exports, pipeline shipments to Mexico dipped slightly in October compared to the previous month. However, LNG feedgas reached 14.6 billion cubic feet per day on a daily basis, marking the highest level since April 2023.
From a technical standpoint, the market saw a short covering, with a 6.28% decrease in open interest, settling at 28,503. Prices increased by 0.5 rupees. Support levels for natural gas are at 252.3, and a breach of this could test the 248.2 mark. On the upside, resistance is anticipated at 261.8, and a move beyond this level could push prices to 267.2.
To access our in-depth coverage of the global commodity market and read the full story, kindly download the Kedia Advisory app through the provided links below:
Download the App:
Android: https://tinyurl.com/KediaAdvisoryApp