Natural gas prices are expected to rise on the back of warmer weather. Natural gas prices rose 3.63% to ₹271.5. Demand increased on higher feedgas volumes from LNG export facilities, averaging 14.2 billion cubic feet (bcfd) in early December, up from 13.6 bcfd in November. Production in the 48 states increased from 101.5 bcfd in November to 102.3 bcfd in December.
Following a 30 bcfd decline in the latest reporting week, US natural gas inventories now stand at 3,937 bcfd. Stocks were 4.9% higher than the same period last year and 7.8% above the five-year average, as the market had expected a draw of 43 bcfd.
Technically, the immediate support for Natural Gas is ₹266.2 while the market is short-covering; it will be tested at ₹261. If the resistance level at ₹276.2 is broken, the price may rise to ₹281. Monitoring weather patterns and LNG export activities is very important for short-term price volatility.
