Natural gas prices traded in range as declining output offset forecasts for cooler weather and less heating demand next week. The market has become much less volatile over the past couple of months as the weather moderates for the spring, amid a widely held expectation that record and growing production will meet any increase in demand.
With warmer weather expected, data provider Refinitiv projected demand in the Lower 48 U.S. states would average 81.2 billion cubic feet per day (bcfd) next week, down from its previous forecast of 83.7 bcfd. Output in the Lower 48, meanwhile, dipped to 88.1 bcfd as a result of small declines in Oklahoma and Wyoming from 88.7 bcfd seen over the past few days.
That is still shy of the all-time daily high of 90.2 bcfd hit on March 29. Utilities likely added 15 billion cubic feet (bcf) of gas to inventories during the week ended April 5. That compares with a 10 bcf withdrawal during the same week last year and a five-year average increase of 5 bcf for the period.
The amount of gas in storage has remained below the five-year average since September 2017. Over the next few days, the mercury is expected to slide from the high 80s on Wednesday to the low 70s by the weekend. The normal high in the city is 79 degrees at this time of year.
Technically market is under fresh selling as market has witnessed gain in open interest by 1.17% to settled at 5806 while prices down -0.3 rupees, now Naturalgas is getting support at 186 and below same could see a test of 185 level, And resistance is now likely to be seen at 188.8, a move above could see prices testing 190.6.
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