Natural Gas yesterday settled down by -2.69% at 509.9 hastened by a larger-than-expected weekly storage build. U.S. Energy Information Administration data showed utilities added 53 billion cubic feet (bcf) of natural gas to storage last week, compared with analysts’ expectations for a smaller-than-usual 37 bcf build. Meanwhile, the number of U.S. gas rigs increased to 144 this week, matching a figure last touched in early October 2019, energy services firm Baker Hughes Co said.
However, U.S. gas stockpiles are still currently 16.8% below the five-year (2017-2021) average for this time of year. HDDs, used to estimate demand for heating of homes and businesses, measure the number of days a day’s average temperature is below 65 degrees Fahrenheit (18 Celsius). Refinitiv projected average U.S. gas demand, including exports, would drop from 98.4 bcfd this week to 92.7 bcfd next week. Meanwhile, data from Refinitiv showed average gas output in the U.S. Lower 48 was at 94.4 billion cubic feet per day (bcfd) so far in April, down from 93.7 bcfd in March, and well below December’s monthly record of 96.3 bcfd.
Technically market is under long liquidation as the market has witnessed a drop in open interest by -10.66% to settle at 2714 while prices down -14.1 rupees, now Natural gas is getting support at 497.2 and below same could see a test of 484.6 levels, and resistance is now likely to be seen at 531.9, a move above could see prices testing 554.
Trading Ideas:
# Natural gas trading range for the day is 484.6-554.
# Natural gas fell hastened by a larger-than-expected weekly storage build.
# EIA data showed utilities added 53 billion cubic feet (bcf) of natural gas to storage last week
# The number of U.S. gas rigs increased to 144 this week, matching a figure last touched in early October 2019
