The US Natural Gas futures succumbed to heavy selling pressure yesterday in intraday moves, testing a six week low but ended session with modest gains of more than 1%. Market is keeping an eye on the US demand-supply dynamics. Energy Information Administration or EIA has stated yesterday that net injections into US storage totaled 37 billion cubic feet or Bcf for the week ending March 21, compared with the five-year (2020–24) average net withdrawals of 31 Bcf and last year's net withdrawals of 30 Bcf during the same week. Working natural gas stocks totaled 1,744 Bcf, which is 122 Bcf (7%) lower than the five-year average and 557 Bcf (24%) lower than last year at this time.
EIA noted that the average rate of withdrawals from storage is 18% higher than the five-year average so far in the withdrawal season (November through March). If the rate of withdrawals from storage matched the five-year average of 0.6 Bcf/d for the remainder of the withdrawal season, the total inventory would be 1,738 Bcf on March 31, which is 122 Bcf lower than the five-year average of 1,860 Bcf for that time of year.
The commodity is back to losing ways today as a mode feeble global outlook kept sentiments stressed and a spike towards $4 per mmbtu mark failed to sustain for the benchmark futures. The US Henry Hub futures are currently trading at $3.89 per mmbtu, down 0.84% on the day. MCX Natural Gas futures are trading at Rs 334.50 per mmbtu, down 1% on the day after testing a low of Rs 333.80 per mmbtu.