Friday, June 19, 2015

Natural Gas futures plunged more than 3 % in the domestic market

Natural Gas futures plunged more than 3 per cent in the domestic market on Thursday as investors and speculators exited positions in the energy commodity tracking a weak trend in the overseas market after supplies rose at a significant pace last week, signaling weakening demand for the weather-sensitive fuel in the US, the world’s biggest fuel user. US gas stockpiles climbed by 89 billion cubic feet to 2.433 trillion cubic feet in the week ended June 12, 2015, the EIA said. Supplies climbed 112 billion cubic feet in the same month a year ago while the five-year average gain was 87 billion cubic feet. However, total stockpiles were 730 billion cubic feet higher than the same time a year ago and 46 billion cubic feet above the five-year average of 2.387 trillion cubic feet for this time of the year, a sign that supplies remain ample.

At the MCX, Natural Gas futures for June 2015 contract closed at Rs 177.20 per 1 kg, down by 3.3 per cent after opening at Rs 182.50, against the previous closing price of Rs 183.30. It touched the intra-day low of Rs 176.70 till the closing.