Natural gas futures gained on decrease in gas drilling rigs

Posted By: Religare
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Natural gas futures gains
On 14th May 2011 (Saturday), natural gas futures prices advanced in the domestic market due to tracking firm global cues.

It climbed on the New York Mercantile Exchange (NYMEX) on Friday as Houston-based Baker Hughes Inc. showed in report that the number of gas drilling rigs fell by 16 to 874 rigs this week, the lowest level since January 29, 2010.

This boosted speculation that supply may deficit in the U.S., world"s largest oil consuming nation. Natural gas for June contract on Friday climbed 5.2 cents, or 1.2%, to settle at US$4.246 per million British thermal units (mmBtu) on the New York Mercantile Exchange (NYMEX).

The Energy Information Administration (EIA) stated in its monthly short term energy outlook that natural gas production will be an average 63.23 billion cubic feet a day in 2011 , down from 63.32 billion cubic feet estimated in April 2011.

At the MCX, natural gas future for May contract closed at Rs. 191.40 per mmBtu, up by 0.47 per cent, after opening at Rs. 191.40 against the previous closing price of Rs. 190.50. It touched the intra-day high of Rs. 192.40 per mmBtu with a business volume of 911 lots.

Read more about: crude, oil and gas, mcx, nymex
Story first published: Monday, May 16, 2011, 12:30 [IST]
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