Natural gas futures eased to Rs 182.10 per mmBtu on September 3 as participants increased their short positions. Prices slipped 1.6 percent on September 2 on the NYMEX.
The restart of production in the Gulf of Mexico after storm activity has put pressure on natural gas prices.
Market participants are likely to take further cues from weekly natural gas data to be released by the US Energy Information Agency (EIA) later in the day.
In the futures market, natural gas for September delivery touched an intraday high of Rs 185.20 and a low of Rs 180.70 per mmBtu on the Multi-Commodity Exchange (MCX). So far in the current series, natural gas has touched a low of Rs 131.30 and a high of Rs 203.
Natural gas futures for September delivery slipped Rs 0.6, or 0.33 percent, to Rs 182.10 per mmBtu at 14:51 hours IST on a business turnover of 11,227 lots. The same for October delivery was down Rs 0.9, or 0.42 percent, at Rs 214.70 per mmBtu on a business volume of 2,102 lots.
The value of September and October’s contracts traded so far is Rs 1,104.34 crore and Rs 62.23 crore, respectively.
“Natural gas has corrected 11 percent from its recent highs and may remain choppy ahead of the inventory report. We expect buying to emerge at lower levels as smaller stock build-up may support prices,” said Kotak Securities.
At 09:24 (GMT), natural gas was down 0.68 percent at $2.46 per mmBtu in New York.
News source: moneycontrol