While record output and mild weather have affected storage demand, natural gas prices increased by 0.24% to close at 207.5. Expectations of colder weather in January and higher demand for heating contributed to the price reduction.
The surplus was mostly due to record gas flows to U.S. LNG export facilities. High output and abundant storage have affected the market; some have estimated that winter futures peaked on November 1 at $3.608 per mmBtu. In December, the average petrol output in the 48 states that make up the United States increased to 108.6 bcfd.
Up to December 30, warmer-than-normal weather is predicted by meteorologists. From December 31 to January 6, colder weather will prevail. December saw a rise in gas flows to significant LNG export facilities while U.S. pipeline exports to Mexico fell.
A 4.26% increase in open interest indicated fresh purchasing in the market, which ultimately settled around 27070 from a technical perspective. Natural gas finds support at 203.4, and it may test 199.2 even with a slight price increase of 0.5 rupees. A breakthrough could result in testing at 213, but resistance is anticipated at 210.3.
