Natural gas futures on MCX are trading at 175.50 near a 6-week low, prices have been falling consistently due to a drop in demand due to milder weather conditions. The recent prediction of lower-than-expected natural gas demand for electricity generation during the summer season has further pushed down the prices. The declining prices have led to increased sales from natural gas producers, which has contributed to the oversupply in the market. Another reason for the declining prices of is the surge in renewable energy sources. With the growth in the renewable energy sector, the demand for natural gas is expected to decrease. The shift towards renewable energy sources has been driven by the need to reduce carbon emissions and meet the growing demand for sustainable energy. Additionally, the increasing storage levels of natural gas have contributed to the fall in prices. The total storage capacity of natural gas in the United States is expected to increase, which will further lower the prices of natural gas futures.
Overall, the declining prices of natural gas futures in the United States can be attributed to a combination of factors, including the drop in demand due to milder weather conditions, the shift towards renewable energy sources, and the increasing storage capacity. The oversupply of natural gas in the market has also contributed to the drop in prices. The future of natural gas prices on MCX remains uncertain, as the sector continues to face new challenges and opportunities.
Technically, the price of natural gas on MCX, stayed on a downward trend, producing new downward waves to move closer to the additional support level at 164.00. This was achieved by taking advantage of the downward pressures brought on by the stochastic’s attempt to move towards the oversold regions. Additionally, the major stability within the bearish channel and the emergence of high-level resistance around 212.00 boost the likelihood of accomplishing the necessary break to reach the additional negative goals at 145.50, which are historical supports.