Natural Gas futures closed higher in the domestic market on Monday as the sharp losses in the previous session when prices tanked 2.5 per cent as forecasts for mild weather across the US threatened to cut demand for the power plant fuel , offered traders a good bargain buying opportunity, in the fuel at existing levels.
About 49 per cent of US households use natural gas for cooling purposes.
Meanwhile, a lower than expected inventory injection in the week ended August 14 also boosted sentiment as supplies climbed 53 billion cubic feet, against expectations for a 58 billion cubic feet injection and following a 65 billion cubic feet increase in the prior week.
At the MCX, Natural Gas futures for August 2015 contract closed at Rs 178.70 per 1 kg, up by 0.45 per cent after opening at Rs 177.10, against the previous closing price of Rs 177.90. It touched the intra-day high of Rs 180.60 till the closing.