Monday, August 31, 2015

Natural Gas boosts Upbeat demand outlook

Natural Gas futures rallied strongly in the domestic market on Friday as investors and speculators booked fresh positions in the energy commodity as forecasts for warmer weather in key US gas consuming regions bolstered the demand outlook for the power plant fuel which is used to fire up air conditioners at offices and homes.

Latest weather forecasting models have called for hot weather in most parts of the southern and western US in the coming days, lifting the need for gas fired cooling.

About 49 per cent of US households use natural gas for cooling purposes.
Meanwhile, US gas supplies climbed by 69 billion cubic feet to 3.099 trillion cubic feet in the week ended August 21, topping expectations for a 53 billion cubic feet increase.

At the MCX, Natural Gas futures for September 2015 contract closed at Rs 181 per 1 kg, up by 1.57 per cent after opening at Rs 178, against the previous closing price of Rs 178.20. It touched the intra-day high of Rs 181.70 till the closing.

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