CommodityOnline | Apr 02, 2014 05:27AM ET
The number of rigs drilling for gas in North America fell by 18 to 326 in the latest report from oil services firm Baker Hughes, the lowest level in nearly 19 years. The number of rigs drilling for natural gas fell even as natural gas in stor-age is poised to end the winter season at the lowest level in more than a decade, data from oil services firm Baker Hughes Inc showed. Meanwhile, the number of rigs looking for oil climbed by 12 to 1,473 rigs, the highest in more than 20 years. Market participants watch the rig count for signs of increased production that will allow utilities to rebuild gas in storage before next winter. Nuclear plant outages, which create demand for natural gas as a substitute fuel for electric generation, were at 19,500 megawatts versus 18,700 MW in the month of March.
Natural gas showcased sharp downfall in the month of March. Prices succumbed to selling pressure throughout the month and skid over 7 percent which made it one of the worst performing commodities in the month of March. The prices have formed lower top lower bottom formation on weekly chart which is a bearish price pattern for the counter. Going forward, the momentum in prices suggests the downfall could continue in the prices where in Rs 245 per mmbtu seems to be a strong support zone for the counter. In the medium term, momentum indicator RSI (14) suggests the counter is in over sold zone and a bounce back is quite likely in the counter. Traders can initiate fresh buying positions around the levels of Rs 260 per mmbtu and set the target of Rs 290 per mmbtu with an eye on the strong support mark at Rs 245per mmbtu for upcoming weeks.
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.