FREE MCX TIPS | Natural Gas falls prey to profit booking

FREE MCX TIPS | Natural Gas futures slid by over 2% in the Indian market on Tuesday tracking weakness in the overseas market as traders resorted to profit booking in the energy commodity after Monday’s nearly 9 per cent surge in prices when forecasts calling for a return to cold weather in central US bolstered the demand outlook for the heating fuel.

About 49 per cent of US households use natural gas for heating purposes. Nov to March is the peak US gas heating season.

However, supplies of the fuel in the US remain 14.1% higher than levels at this time a year ago and 8.4 per cent above the five-year average for this time of 365 days, weighing on sentiment.

At the MCX, Natural Gas futures for December 2015 contract closed at Rs 124.6 per mmBtu, down by 2.43 per cent, after opening at Rs 127.1, against the previous closing price of Rs 127.7. It touched an intra-day low of Rs 123.7.