Natural Gas extended a rally in the domestic and overseas market on Wednesday as forecasts for warmer weather in the US boosted the demand outlook for the fuel that is used in firing up power plants as demand for air conditioning rises at offices and homes.Latest weather forecasting models called for warmer-than-normal temperatures across many regions, including the east, central and southern parts of the US after August 20 and until the end of the month.
About 49 5% of US households use natural gas for cooling purposes.
All eyes are on Thursday’s storage data which may show an injection of 50 billion cubic feet in the week ended August 7, 2015, lower than the year ago build of 79 billion cubic feet.However, total storage levels at 2.912 trillion cubic feet are 22.5 per cent above year ago levels and 2.2 per cent higher than the five-year average, a sign that the market remains more than adequately supplied, trimming gains in the fuel. At the MCX, Natural Gas futures for August 2015 contract closed at Rs 183 per 1 kg, up by 0.49 per cent after opening at Rs 182, against the previous closing price of Rs 182.10. It touched the intra-day high of Rs 183.70 till the closing.
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