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15 Jan 2015
Natural Gas declines after inventory data
FXStreet (Mumbai) - Natural gas prices in the US trade declined from the session highs after the data in the US showed a larger than expected drawdown in the inventories during the last week.
The February futures traded 1.76% higher at USD 3.29/mmBtu, compared to the previous session’s close at USD 3.233/mmBtu. Gas prices eased from the session high of USD 3.35 hit ahead of the data , in anticipation of a drop in the inventories. Thus, we are witnessing a classic “buy the rumor, sell the fact” trade as prices inched lower after the data confirmed a larger drop in the inventories. The EIA data showed inventories dropped 236 billion cubic feet (Bcf), beating the estimated drop of 224 Bcf, and higher than the previous week’s drop of 113 Bcf.
Natural Gas Technical Levels
The immediate resistance is seen at 3.349, above which gains could be extended to 3.4 levels. Meanwhile, support is seen at 3.236, under which Natural gas could fall sharply to 2.97 levels.
The February futures traded 1.76% higher at USD 3.29/mmBtu, compared to the previous session’s close at USD 3.233/mmBtu. Gas prices eased from the session high of USD 3.35 hit ahead of the data , in anticipation of a drop in the inventories. Thus, we are witnessing a classic “buy the rumor, sell the fact” trade as prices inched lower after the data confirmed a larger drop in the inventories. The EIA data showed inventories dropped 236 billion cubic feet (Bcf), beating the estimated drop of 224 Bcf, and higher than the previous week’s drop of 113 Bcf.
Natural Gas Technical Levels
The immediate resistance is seen at 3.349, above which gains could be extended to 3.4 levels. Meanwhile, support is seen at 3.236, under which Natural gas could fall sharply to 2.97 levels.