MCX Natural Gas expected to trade in a range between 303-307

Natural Gas on MCX settled up 5.48% at 290.5 driven by expectations of colder-than-normal weather over the next two weeks and concerns about low inventories during the winter.

With colder weather projected, data showed total degree days (TDDs) in the lower 48 U.S. states would rise to 371 over the next two weeks, up from the 369 forecasted.

Degree days measure the number of degrees a day’s average temperature is above or below 65 Fahrenheit (18 Celsius) and are used to estimate demand to heat or cool homes and businesses. Projected demand in the lower 48 U.S. states will rise to 108.3 billion cubic feet per day (bcfd) this week and 104.5 bcfd next week.

This compared with 87.5 bcfd in the prior week. Utilities likely added 32 billion cubic feet (bcf) of gas into storage during the week ended Nov. 9. That compared with a withdrawal of 13 bcf for the same week last year and a five-year average increase of 19 bcf.

Output in the lower 48 states, meanwhile, averaged a record high 87 bcfd over the past 30 days. On a daily basis, production was only at around 86.96 bcfd, well below the recent all-time high of 88.0 bcfd on Oct. 31, according to data.

Meanwhile, market participants looked ahead to storage data for the week ending November 9, due out on Thursday. Total natural gas in storage currently stands at 3.208 trillion cubic feet (tcf), according to the U.S. Energy Information Administration, the lowest level for this time of year in about 15 years. The last time supplies were this low in the first week of November was in 2003

Trading Ideas:
–Natural Gas trading range for the day is 303-307.
Natural gas rose driven by expectations of colder-than-normal weather over the next two weeks and concerns about low inventories during the winter.
–With colder weather projected, data showed total degree days (TDDs) in the lower 48 U.S. states would rise to 371 over the next two weeks, up from the 369 forecasted.
–Projected demand in the lower 48 U.S. states will rise to 108.3 billion cubic feet per day (bcfd) this week and 104.5 bcfd next week.

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