Natural gas futures down 0.38% in afternoon trade

Natural gas futures declined to Rs 129.90 per mmBtu on July 1 as participants increased their short positions.

Expectations that production may remain low due to increasing pressure on shale producers amid lower prices is lending support to prices.

In the futures market, natural gas for July delivery touched an intraday high of Rs 131 and an intraday low of Rs 129.20 per mmBtu on the Multi-Commodity Exchange (MCX). So far in the current series, natural gas has touched a low of Rs 115.50 and a high of Rs 184.50.

Natural gas futures for July delivery slipped Rs 0.50, or 0.38 percent, to Rs 129.90 per mmBtu at 14:46 hours IST on a business turnover of 19,256 lots.

The same for August delivery edged lower by Rs 0.60, or 0.45 percent, to Rs 133.70 per mmBtu on business volumes of 1,230 lots.

The value of July and August contracts traded so far is Rs 491.87 crore and Rs 13.41 crore, respectively.

Natural gas has immediate resistance at Rs 133.50 while support is placed at Rs 125-122, according to Motilal Oswal.

At 09:17 (GMT), the natural gas price was trading down 2.11 percent at $1.71 per mmBtu in New York.

For all commodities related news, click here