Natural Gas Price

On Monday, the MCX Crude Oil futures were seen trading above the 100-DMA for the first time in more than six months. Sustained trade above Rs 6,350 can help the trend turn favourable for Crude Oil.

Torrent Gas on Saturday said it has cut CNG prices by up to Rs 8.25 per kg and piped cooking gas prices by up to Rs 5 following the government move to reduce input natural gas prices. Torrent Gas has licences to operate city gas networks retailing CNG to automobiles and piped natural gas, called PNG, to household kitchens in 34 districts across the country, including in Chennai and Jaipur. In a statement, the firm said it is effecting "a significant reduction of between Rs 4 per standard cubic meter to Rs 5 per SCM in the price of domestic PNG and between Rs 6 per kg to Rs 8.25 per kg in the retail price of CNG in its areas of operation across the country effective from today evening". This will make CNG up to 47 per cent cheaper when compared to petrol and 31 per cent cheaper when compared to diesel. Similarly, domestic PNG will now be up to 28 per cent cheaper when compared to domestic LPG. On Friday, the government revised the pricing of natural gas and imposed a cap or ceiling

The government on Thursday amended the domestic pricing model of natural gas in line with the recommendations of the Kirit Parikh committee on gas pricing

Centre accepts all major recommendations of Kirit Parikh committee, imposes price caps

The Union Cabinet is likely to soon consider imposing caps or a ceiling on price for majority of natural gas produced in the country to keep input costs for users ranging from CNG to fertilizer companies in check, sources said. The government bi-annually fixes prices of locally produced natural gas -- which is converted into CNG for use in automobiles, piped to household kitchens for cooking and used to generate electricity and make fertilisers. Two different formulas govern rates paid for gas produced from legacy or old fields of national oil companies like Oil and Natural Gas Corporation (ONGC) and Oil India Ltd (OIL), and that for newer fields lying in difficult to tap areas such as deepsea. The global spurt in energy prices post Russia's invasion of Ukraine have led to rates of locally produced gas climbing to record levels - USD 8.57 per million British thermal unit for gas from legacy or old fields and USD 12.46 per mmBtu for gas from difficult fields. These rates are due to

The anticipated trading band for the MCX Crude Oil futures has got narrower to Rs 6,180 - Rs 6,660. Broader trend for Natural Gas remains weak as the commodity trades below 200-WMA.

The Bollinger Bands suggest a likely trading range of Rs 6,070 - Rs 6,650 for the MCX Crude Oil futures; whereas, Natural Gas futures need to sustain above Rs 231 for the pullback to continue.

Meanwhile, the MCX Natural Gas futures need to conquer the key resistances at Rs 224 and Rs 232 for a meaningful pullback rally to emerge.

The MCX Natural Gas futures need to sustain above Rs 209-level, break and sustained trade above Rs 224 can trigger a rally towards Rs 255.

Natural Gas futures have tumbled over 74 per cent their record highs. The commodity is now seen trading below major monthly moving averages after two years.

On the upside, the Rs 6,700-odd level remains a major hurdle for Crude Oil futures; whereas, interim support for Natural Gas is placed at Rs 240.

Freeing the industry from administrative pricing could be the best way forward

In case Rs 285 holds, Natural Gas futures can potentially rally to Rs 344.

Gas markets have turned calmer after a tumultuous period last year when energy prices surged to records and hammered economies everywhere

On the downside, MCX Crude Oil January futures could slide to Rs 5,940 or even re-test the recent lows at Rs 5,850-level; Natural Gas seems on course to test Rs 290 level.

Lower gas prices are also a relief for the European economy, which is pressured by high inflation rates

On the downside, key support for MCX Crude Oil stands at Rs 6,350, below which a steeper fall to Rs 4,800 seems possible. Rs 413 - 418 is the resistance zone for Natural Gas on Wednesday.

On the downside, the MCX Crude Oil futures can re-test its recent low around Rs 5,850-level; whereas, the next support for beaten-down Natural Gas contract stands at Rs 401.

European Union (EU) member states have agreed to cap natural gas prices in the bloc at 180 euros ($191) per megawatt-hour (MWh) in an effort to ensure the security of energy supply

European Union ministers were trying again on Monday to finalise a long-awaited deal to implement a natural gas price cap that they hope can help households and businesses better weather excessive price surges. The ministers have previously failed at overcoming their differences at five previous so-called emergency meetings, but several EU leaders said last week that fixing a maximum ceiling to pay for gas was likely to be achieved this time. We have defined the political framework that will allow our ministers to finalise the issue of a gas price cap," French President Emmanuel Macron said last week after a meeting of EU leaders in Brussels." The 27 nations have stuck together through nine rounds of sanctions against Russia over the war in Ukraine and energy-saving measures to avoid shortages of the fuel used to generate electricity, heat homes and power factories. But they have not been able to close a deal on setting a complicated price cap that had been promised in October as a