September 21, 2021

The World Live Breaking News Coverage & Updates IN ENGLISH

The World Live Breaking News Coverage & Updates IN ENGLISH

Natural gas futures pullback after a sharp spike

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, Natural gas futures pullback after a sharp spike, The World Live Breaking News Coverage & Updates IN ENGLISH
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, Natural gas futures pullback after a sharp spike, The World Live Breaking News Coverage & Updates IN ENGLISH
, Natural gas futures pullback after a sharp spike, The World Live Breaking News Coverage & Updates IN ENGLISH

Natural gas futures fell on September 14 as participants booked profit after a sharp rally yesterday. The gas prices had risen 5.9 percent yesterday on the NYMEX.

The energy commodity traded in the negative territory after a gap-down start, tracking the weak global cues. The gas price touched a life high of Rs 387/mmBtu on MCX and $5.289/mmBtu on NYMEX yesterday, the highest since 2014.

On the MCX, natural gas delivery for September dropped Rs 1.90, or 0.49 percent to Rs 383.40 per mmBtu at 14:25 hours with a business turnover of 11,064 lots.

Gas delivery for October slipped Rs 1.40, or 0.36 percent, to Rs 387.70 per mmBtu with a business volume of 4,852 lots.

The value of September and October’s contracts traded so far is Rs 671.51 crore and Rs 89.85 crore, respectively.

MCX iCOMDEX Natural Gas Index decreased 21.69 points or 0.46 percent to 4,666.66.

Kotak Securities said natural gas continues to hit fresh highs as tightness in the US market has forced speculators to cut their bearish bets. US gas production shut in the Gulf of Mexico is recovering slowly while there are additional storm concerns.

Kshitij Purohit, Product Manager, Currency & Commodities, CapitalVia Global Research Limited said, “Natural gas rose sharply on Monday as Tropical Storm Nicholas brews in the Gulf of Mexico, threatening Texas. A second storm is approaching the Caribbean, with a 10 percent chance of developing into a tropical cyclone in the next 48 hours.”

According to a forecast from the National Oceanic and Atmospheric Administration, the weather will continue substantially warmer than normal for the next two weeks.

Approximately 51.61 percent of the Gulf of Mexico gas production remained shut as of September 13 against 54.39 percent a day earlier, as per the US Bureau of Safety and Environmental Enforcement.

Technicals

The commodity has been trading higher than 5, 20, 50, 100, and 200 days’ simple moving averages and exponential moving averages on the daily chart. The momentum indicator Relative Strength Index (RSI) is at 77.34, which suggest some pullback in the price.

At 0907 GMT, the natural gas price was down 0.61 percent at $5.19 per mmBtu in New York.

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