Natural gas futures plunged to Rs 179.30 per mmBtu after hitting a December series low of Rs 178.6 during the intraday trading as participants piled up short positions as seen by the open interest. The price of natural gas had fallen 11.44 percent last week on the MCX.
The average total supply of natural gas has been higher compared to the previous week, averaging at 95.8 Bcf/d (billion cubic feet per day), according to PointLogic Energy.
The prices have been under pressure on a forecast of warmer weather in the coming weeks.
The number of rigs drilling natural gas in the US fell by 2 to 77 for the week ending December 4, said Baker Hughes in a weekly report.
MCX iCOMDEX Natural Gas Index dropped 142.31 points, or 6.03 percent to 2,216.31.
Kshtij Purohit, Product Manager Currency and Commodities, CapitalVia Global Research Limited, said, “Natural gas markets have fallen during the week after initially trying to break above the $3/mmBtu level. However, what you do not see on the weekly chart is the fact that we ended up forming a bit of a hammer on Friday night at the 200-day Exponential Moving Average (EMA). The 50-week EMA underneath has offered support, so ultimately it is only a matter of time before we could bounce again.”
Also read: Natural gas futures slip 11.44% to rs 191.90 per mmBtu during the week, outlook bearish
In the futures market, natural gas for December delivery touched an intraday high of Rs 185 and an intraday low of Rs 178.60 per mmBtu on MCX. So far in the current series, natural gas has touched a low of Rs 178.60 and a high of Rs 259.80.
Natural gas delivery for December slipped by Rs 11.10, or 5.82 percent, to Rs 179.50 per mmBtu at 14:38 hours IST with a business turnover of 12,715 lots.
Natural gas delivery for January fell Rs 10.50, or 5.46 percent, to Rs 181.70 per mmBtu with a business volume of 1,628 lots.
The value of December and January’s contracts traded so far is Rs 922.12 crore and Rs 42.99 crore, respectively.
At 09:10 (GMT), the natural gas price was down 6.21 percent quoting at $2.41 per mmBtu in New York.
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