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5 Feb 2015
Natural Gas falls to Aug 2012 levels
FXStreet (Mumbai) - Natural Gas prices in the US fell to a level last seen in Aug 2012 after the supplies declined less than expected in the previous week.
Weak drawdown in inventory amid near normal weather forecasts
The US Energy Information Administration (EIA) data showed natural gas storage in the week ended January 30 fell by 115 billion cubic feet, compared to expectations for a decline of 121 billion. Total storage stood at 2.428 trillion cubic feet.
Meanwhile, the markets are also betting that the forecasts of near-normal weather shall reduce the winter demand for the heating fuel.
Natural Gas Technical Levels
The futures currently trade 1.97% lower at USD 2.61/mmBtu. Prices hit a low of USD 2.584/mmBtu before moving slightly higher to USD 2.61 levels. The immediate support is seen at 2.575 (Aug 2012 low), under which losses could be extended to 2.408 (Sept 2009 low). Meanwhile, resistance is seen at 2.695 and 2.779 levels.
Weak drawdown in inventory amid near normal weather forecasts
The US Energy Information Administration (EIA) data showed natural gas storage in the week ended January 30 fell by 115 billion cubic feet, compared to expectations for a decline of 121 billion. Total storage stood at 2.428 trillion cubic feet.
Meanwhile, the markets are also betting that the forecasts of near-normal weather shall reduce the winter demand for the heating fuel.
Natural Gas Technical Levels
The futures currently trade 1.97% lower at USD 2.61/mmBtu. Prices hit a low of USD 2.584/mmBtu before moving slightly higher to USD 2.61 levels. The immediate support is seen at 2.575 (Aug 2012 low), under which losses could be extended to 2.408 (Sept 2009 low). Meanwhile, resistance is seen at 2.695 and 2.779 levels.