Commodity Trading Tips: Bullish supplies data lifts Natural Gas

Commodity Trading Tips: Natural Gas futures surged by over 1 per cent in the domestic market on Thursday tracking a firm trend in the overseas market as a bigger than expected dip in US gas supplies last week signaled a pickup in demand for the heating fuel in the world’s biggest economy.

The EIA said that US gas stockpiles fell by 211 billion cubic feet to 3.086 trillion cubic feet in the week ended January 22, 2016.

Analysts expected a 206 billion cubic feet withdrawal in stockpiles last week.

About 49% of US households use natural gas for heating purposes. November to March is the peak United state gas heating season.

At the MCX, Natural Gas futures for February 2016 contract closed at Rs 149.1 per mmBtu, up by 1.02 per cent, after opening at Rs 147, against the previous closing price of Rs 147.6. It touched an intra-day high of 150.

Commodity Trading Tips: Natural Gas extends rally on frigid weather

Commodity Trading Tips: Natural Gas futures surged by more than 1.5% in the domestic market on Wednesday as investors and speculators booked fresh positions in the energy commodity as forecasts for colder temperatures across parts of the US in the next two weeks bolstered the demand outlook for the heating fuel in the world’s biggest economy.

Updated weather forecasting models called for cooler weather in the US through the middle of February, boosting demand for gas-fired heating at offices and homes.

About 49% of US households use natural gas for heating purposes. November to March is the peak US gas heating season.

The focus today will on the release of the weekly US storage data by the EIA which may show a 206 billion cubic feet withdrawal in stockpiles in the week ended January 22, 2016. At the MCX, Natural Gas futures for February 2016 contract closed at Rs 147.6 per mmBtu, up by 1.51 per cent, after opening at Rs 146.5, against the previous closing price of Rs 145.4. It touched an intra-day high of 151.2.

Crude Oil Tips: Oil Bears return as prices skid over 2%

Crude Oil Tips: Crude oil futures pulled back after Friday’s impressive rally as prices of the energy commodity slipped by over 2.5 per cent in the domestic market on Monday tracking losses in the overseas market amidst concerns that the weekend’s massive snowstorm which rocked the US East Coast may sap the demand for the fuel.

Prices had surged over 5 per cent on Friday as the European Central Bank (ECB) signaled stepping up its easing program in March, bolstering the demand outlook for the fuel.

A sharp contraction in US regional manufacturing activity triggered fears over a slowdown in the world’s biggest economy, clouding the demand outlook for the fuel. The Dallas Fed’s general business activity index, a gauge measuring manufacturing activity in the region tumbled to the lowest level since April 2009, down by 13 points to -34.6 in January, with a reading below zero signaling contraction.

Oil may rebound today amidst speculation of co-operation between OPEC and Non-OPEC members to cut output and support prices. However, the gains in the fuel may be curbed by rising US storage levels as the API showed an 11.4 million barrels jump in crude stockpiles last week.

At the MCX, Crude oil futures, for the January 2016 contract, closed at Rs 2,100 per barrel, down by 2.69 per cent, after opening at 2,170, against the previous close price of Rs 2,158. It touched an intraday low of Rs 2,075.

Commodity Trading Tips: Yellow metal regains sheen ahead of Fed verdict

Commodity Trading Tips: Gold futures advanced in the domestic and Foreign market on Monday as investors eyed the US Federal Reserve’s monetary policy verdict with the world’s top central bank likely to hold off further interest rate tightening, bolstering the lure for the precious metal as a store of value.

Heavy global headwinds which have fueled an American factory slump have raised speculation that the Fed may keep interest rates unchanged at the end of a two-day meet that concludes on Wednesday. The FOMC undertook a maiden interest rate hike since 2006 in December.

Investors will also focus on cues from the central bank over further lift-off in borrowing costs this year amidst heightened global economic uncertainty. Gold, a non-interest bearing asset benefits from easy money policies.

Losses in US equities and falling oil prices bolstered the safe haven appeal of the bullion while a weaker dollar boosted the appeal of Gold as an alternative asset. Weaker greenback makes Bullion cheaper for those holding other currencies, thus boosting demand.

Gold may trade on a cautious note today ahead of the Fed’s monetary policy decision.

At the MCX, Gold futures for February 2016 contract closed at Rs 26,387 per 10 gram, up by 0.87 per cent after opening at Rs 26,247, against the previous closing price of Rs 26,160. It touched the intra-day high of Rs 26,442.