Good Buying Emerges In Natural Gas

Good buying emerged in Natural Gas today after a brief correction yesterday. EIA released its weekly Natural Gas Storage Report yesterday and noted that the natural gas stocks fell by 36 Bcf last week, dropping from 1,335 Bcf to 1,299 Bcf. This is 38.3% below the 2,107 Bcf that was in storage at this point last year, and is 25.7% below the five-year average of 1,748 Bcf. The report was mostly supportive as markets focused on figures of 38 Bcf average injection for this time of year. Cold weather has been supportive for the commodity with the futures testing near five week high of $ 2.79 per mmbtu earlier this week. The commodity currently trades at $ 2.68 per mmbtu, up 0.80% on the day. MCX Natural Gas futures are currently trading at Rs 177.70 per mmbtu, up 0.57% on the day.