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6 Feb 2015
Natural gas recovers from 2-1/2 year lows
FXStreet (Mumbai) - Natural Gas prices on NYMEX rebounded today after falling to fresh two and a half year lows in the US last session amid abundant supplies as reflected by the Energy Information Administration (EIA) data.
Trades above USD 2.60/mmBtu
The futures currently trade 0.52% higher at USD 2.614/mmBtu. Prices hit a 2-1/2 year low of USD 2.578/mmBtu in the previous session after EIA showed stockpiles fell less than expected last week. Inventories sit at 2.4 trillion cubic feet, up 24% from a year ago and just 1.2% below the five-year average. The rebound in prices is seen on a short-covering rally after the recent slump in prices.
However, the markets now bet on forecasts of near-normal weather which may continue to drag natural gas prices down.
Natural Gas Technical 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 2.63 and 2.69 levels.
Trades above USD 2.60/mmBtu
The futures currently trade 0.52% higher at USD 2.614/mmBtu. Prices hit a 2-1/2 year low of USD 2.578/mmBtu in the previous session after EIA showed stockpiles fell less than expected last week. Inventories sit at 2.4 trillion cubic feet, up 24% from a year ago and just 1.2% below the five-year average. The rebound in prices is seen on a short-covering rally after the recent slump in prices.
However, the markets now bet on forecasts of near-normal weather which may continue to drag natural gas prices down.
Natural Gas Technical 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 2.63 and 2.69 levels.