Global Natural Gas Slips As Correction Extends

US Natural Gas futures slipped today as a correction from a four month highs earlier this week extended. Working natural gas in storage was 1,538 Bcf as of Friday, May 11, 2018, according to US EIA estimates. This represents a net increase of 106 Bcf from the previous week. Stocks were 821 Bcf less than last year at this time and 501 Bcf below the five-year average of 2,039 Bcf. At 1,538 Bcf, total working gas is within the five-year historical range. However, the demand is expected to weaken as most of the US is expected to see warmer weather next week. The commodity fell nearly half a percent to $ 2.846 per mmbtu. However, the MCX Natural Gas futures are trading flat following weak Indian Rupee. The counter quotes at Rs 193.80 per mmbtu, unchanged on the day.

The Indian rupee dropped against the dollar on fresh demand for the greenback from importers and banks. Crude oils breach of the $ 80 per barrel-mark in global market and a lower opening of the domestic equity market too weighed on the investor sentiment here. Increased demand for the US currency from importers and foreign fund outflows. However, dollars weakness against some currencies overseas capped some of the losses. The local currency fell near 67.90 against the dollar.