Back
21 Oct 2014
Natural gas continues to trade weak
FXStreet (Mumbai) - Natural gas continues to trade near 2014 lows as mild weather is likely to curb heating demand for fuel during the peak season of winter.
Natural Gas for November delivery is trading 0.15% lower at USD 3.664/Oz. The updated weather models indicate more seasonal temperature readings till Oct 31. Furthermore, producers have added more stockpiles in the first two weeks of this month than what they did during any other period. Thus, demand may not outstrip supply during the peak period this year.
Moreover, with producers showing no signs of slowing down, the prices become more dependent on the weather.
Natural Gas Technical levels
Natural gas has failed to sustain above the yesterday’s closing level of 3.67, opening doors for a a further sell-off towards 3.4 levels. On the flip side, prices may rise to 3.725 levels if the immediate resistance of 3.67 is breached.
Natural Gas for November delivery is trading 0.15% lower at USD 3.664/Oz. The updated weather models indicate more seasonal temperature readings till Oct 31. Furthermore, producers have added more stockpiles in the first two weeks of this month than what they did during any other period. Thus, demand may not outstrip supply during the peak period this year.
Moreover, with producers showing no signs of slowing down, the prices become more dependent on the weather.
Natural Gas Technical levels
Natural gas has failed to sustain above the yesterday’s closing level of 3.67, opening doors for a a further sell-off towards 3.4 levels. On the flip side, prices may rise to 3.725 levels if the immediate resistance of 3.67 is breached.