What is Natural Gas Inventory and the impact of data?
Natural gas is an energy source which is often used for cooking, heating and electricity generation. Natural gas is also used as fuel for vehicles and as a chemical feedstock in the manufacture of plastics and other commercially important organic chemicals.
Energy Information Administration (EIA) released inventory on weekly basis, 5 days after the week ends.
This is a US indicator, it most affects the energy sector.
Change in the number of cubic feet of natural gas held in underground storage during the past week.
An inventory called as Nat Gas Stocks, Nat Gas Inventories, Working Gas etc.
Impact of inventory:
If the inventory decline is than the expectations, it is a sign that lower supply or stronger demand than expected. It is a bullish data for natural gas. However, if the decrease in natural gas inventories is less than expected, it is sign of either stronger supply or lower demand than expected. It is a bearish for natural gas.
MCX Natural gas May contract yesterday closed at 187 which is changed up by 6.20 rupees. Today a support is around 179 if Natural gas sustains below this level then weakness may possible in this counter and then the target will be 173-168 zones. Overall natural gas is in bullish mode and expecting this counter to head towards 201-208 levels in short term. Strong Resistance is now seen around 190.2 or if sustain above it we will see a sharp rally for the trgt of 205-211.
Today the trading range for the day in Natural Gas is the key support at 179 and resistance at 190.
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