Friday, November 27, 2015

Natural Gas futures Extended Their Bearish Ride

Mcx commodity tips - Natural Gas futures extended their bearish ride, plummeting by over 2 per cent in the domestic market on Thursday as investors and wanderr exited positions in the energy commodity amidst record high storage levels.

Tepid gas-fired heating demand in the US amid a warmer than average start to the winter has pushed stockpiles of the fuel to an all-time high of 4.01 trillion cubic feet.

United States gas supplies climbed by 9 billion cubic feet in the week ended November 20/15, trumping analysts’ expectations for a rise of 4 billion cubic feet.

Stockpiles are above 16 per cent the year ago levels and about 6.7 per cent above the five-year average.

At the MCX, Natural Gas futures for December 2015 contract closed at Rs 150.7 per mmBtu, down by 2.5 per cent, after opening at Rs 153.5, against the previous closing price of Rs 154.5. It touched an intra-day low of Rs 150.2.