Natural gas futures extended a slide in the domestic market on Friday amid worries that the market remains oversupplied while traders weighed near-term weather forecasts to gauge the demand for the weather-sensitive energy commodity.
US gas supplies climbed by 61 billion cubic feet to 2.828 trillion cubic feet in the week ended July 17, 2015, topping the five-year average gain of 53 billion cubic feet, while stockpiles were 622 billion cubic feet higher than year ago levels and 81 billion cubic feet above the five-year average of 2.747 trillion cubic feet for the same time of the year.
Meanwhile, latest weather forecasting models continued to call for above-normal weather across most parts of the US next week before cooler temperatures across most of the US Northeast and Midwest in the following week, offering no clear trend for the demand outlook of the power plant fuel which is used to fire up air conditioners.
At the MCX, Natural Gas futures for July 2015 contract closed at Rs 178.70 per 1 kg, down by 1.22 per cent after opening at Rs 180.20, against the previous closing price of Rs 180.90. It touched the intra-day low of Rs 177.60 till the closing.